Document and Entity Information Document (USD $)	12 Months Ended
Document and Entity Information Document (USD $)	Nov. 01, 2015	Nov. 29, 2015	May 03, 2015
Entity Information [Line Items]
Entity Registrant Name	Avago Technologies LTD
Entity Central Index Key	0001441634
Current Fiscal Year End Date	--11-01
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Nov. 01, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		276,489,575
Entity Public Float			$ 31,800,000,000

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Nov. 01, 2015	Nov. 02, 2014
Current assets:
Cash and cash equivalents	$ 1,822	$ 1,604
Trade accounts receivable, net	1,019	782
Inventory	524	519
Assets held-for-sale	22	628
Other current assets	388	302
Total current assets	3,775	3,835
Property, plant and equipment, net	1,460	1,158
Goodwill	1,674	1,596
Intangible assets, net	3,277	3,617
Other long-term assets	406	285
Total assets	10,592	10,491
Current liabilities:
Accounts payable	617	515
Employee compensation and benefits	250	219
Other current liabilities	206	236
Current portion of long-term debt	46	46
Total current liabilities	1,119	1,016
Long-term liabilities:
Long-term debt	3,903	4,543
Convertible notes payable to related party - non-current	0	920
Pension and post-retirement benefit obligations	475	506
Other long-term liabilities	381	263
Total liabilities	5,878	7,248
Commitments and contingencies (Note 12)
Shareholders’ equity:
Ordinary shares, no par value; 276,259,120 shares and 254,330,630 shares issued and outstanding on November 1, 2015 and November 2, 2014, respectively	2,547	2,009
Retained earnings	2,240	1,284
Accumulated other comprehensive loss	(73)	(50)
Total shareholders’ equity	4,714	3,243
Total liabilities and shareholders’ equity	$ 10,592	$ 10,491

(Parentheticals)	Nov. 01, 2015	Nov. 02, 2014
Statement of Financial Position [Abstract]
Common Stock, Shares, Issued	276,259,120	254,330,630
Common Stock, Shares, Outstanding	276,259,120	254,330,630

Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified

3 Months Ended

12 Months Ended

Nov. 01, 2015

Aug. 02, 2015

May 03, 2015

Feb. 01, 2015

Nov. 02, 2014

Aug. 03, 2014

May 04, 2014

Feb. 02, 2014

Nov. 01, 2015

Nov. 02, 2014

Nov. 03, 2013

Net revenue

$ 1,840

$ 1,735

$ 1,614

$ 1,635

$ 1,590

$ 1,269

$ 701

$ 709

$ 6,824

$ 4,269

$ 2,520

Cost of products sold:

Cost of products sold

712

720

654

694

688

760

326

347

2,780

2,121

1,260

Amortization of intangible assets

129

113

108

105

484

249

Restructuring charges

Total cost of products sold

843

851

768

809

802

876

344

370

3,271

2,392

1,322

Gross margin

997

884

846

826

788

393

357

339

3,553

1,877

1,198

Research and development

287

276

251

235

234

240

114

107

1,049

695

398

Selling, general and administrative

118

143

108

117

129

137

486

407

222

Amortization of intangible assets

249

197

Restructuring, Settlement and Impairment Provisions

137

140

Total operating expenses

483

585

428

425

487

555

197

200

1,921

1,439

646

Operating income

514

299

418

401

301

(162)

160

139

1,632

438

552

Interest expense

(41)

(43)

(53)

(54)

(55)

(1)

(191)

(110)

(2)

Other income, net

(1)

(2)

Income from continuing operations before income taxes

485

267

364

351

263

(219)

159

139

1,467

342

568

Provision for income taxes

126

(99)

Income from continuing operations

470

244

339

338

137

(120)

158

134

1,391

309

552

Loss from discontinued operations, net of income taxes

(41)

^[1]

(4)

^[1]

(2)

^[1]

(44)

(27)

(46)

Net income

$ 429

$ 240

$ 344

$ 351

$ 135

$ (164)

$ 158

$ 134

$ 1,364

$ 263

$ 552

Basic income per share:

Income per share from continuing operations (in dollars per share)

$ 1.70

$ 0.92

$ 1.31

$ 1.33

$ 0.54

$ (0.48)

$ 0.63

$ 0.54

$ 5.27

$ 1.23

$ 2.23

Loss per share from discontinued operations, net of income taxes (in dollars per share)

$ (0.15)

$ (0.01)

$ 0.02

$ 0.05

$ (0.01)

$ (0.17)

$ 0.00

$ (0.10)

$ (0.18)

$ 0.00

Net income per share (in dollars per share)

$ 1.55

$ 0.91

$ 1.33

$ 1.38

$ 0.53

$ (0.65)

$ 0.63

$ 0.54

$ 5.17

$ 1.05

$ 2.23

Diluted income per share:

Income per share from continuing operations (in dollars per share)

$ 1.64

$ 0.85

$ 1.19

$ 1.22

$ 0.50

$ (0.48)

$ 0.61

$ 0.53

$ 4.95

$ 1.16

$ 2.19

Loss per share from discontinued operations, net of income taxes (in dollars per share)

$ (0.15)

$ (0.01)

$ 0.02

$ 0.04

$ 0.00

$ (0.17)

$ 0.00

$ (0.10)

$ (0.17)

$ 0.00

Net income per share (in dollars per share)

$ 1.49

$ 0.84

$ 1.21

$ 1.26

$ 0.50

$ (0.65)

$ 0.61

$ 0.53

$ 4.85

$ 0.99

$ 2.19

Weighted-average shares:

Basic (in shares)

276

265

258

255

254

252

251

249

264

251

247

Diluted (in shares)

287

284

278

272

252

258

255

281

267

252

Cash dividends declared and paid per share (in dollars per share)

$ 0.42

$ 0.40

$ 0.38

$ 0.35

$ 0.32

$ 0.29

$ 0.27

$ 0.25

$ 1.55

$ 1.13

$ 0.80

[1]

The fiscal quarter ended November 1, 2015 includes a $28 million loss on the disposal of our Endace Business. The fiscal quarter ended February 1, 2015 includes a $14 million gain on the disposal of our Axxia Business. The fiscal quarter ended November 2, 2014 includes an $18 million gain on disposal of our Flash Business.

Consolidated Statements of Comprehensive Income Statement (USD $) In Millions, unless otherwise specified	12 Months Ended
	Nov. 01, 2015	Nov. 02, 2014	Nov. 03, 2013
Net income	$ 1,364	$ 263	$ 552
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains on post-retirement plans and defined benefit pension plans and impact on plan amendment	(24)	(41)	8
Reclassification to net income	1	(3)	0
Change in net unrealized loss on available-for-sale securities	0	0	(3)
Other comprehensive (loss) income	(23)	(44)	5
Comprehensive income	$ 1,341	$ 219	$ 557

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	12 Months Ended
	Nov. 01, 2015	Nov. 02, 2014	Nov. 03, 2013
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	$ 962	$ 625	$ 187
Amortization of debt issuance costs and accretion of debt discount	22	14	1
Share-based compensation	232	163	77
Tax benefits from share-based compensation	130	42	25
Excess tax benefits from share-based compensation	(125)	(39)	(17)
Restructuring Costs and Asset Impairment Charges	77	9	0
(Loss) gain on disposal of discontinued operations	14	(18)	0
Deferred taxes	(220)	(92)	(22)
Other	28	(1)	(12)
Changes in assets and liabilities, net of acquisitions and disposals:
Trade accounts receivable, net	(187)	(70)	(26)
Inventory	62	193	(55)
Accounts payable	29	13	22
Employee compensation and benefits	8	20	32
Other current assets and current liabilities	118	(219)	43
Other long-term assets and long-term liabilities	40	(166)	1
Cash flows from operating activities:
Net income	1,364	263	552
Net cash provided by operating activities	2,318	1,175	722
Cash flows from investing activities:
Purchases of property, plant and equipment	(593)	(409)	(236)
Purchases of property, plant and equipment	110	0	0
Proceeds from disposals of property, plant and equipment	650	450	0
Total purchase price, net of cash acquired	394	5,961	414
Proceeds from sale of investments	0	35	13
Purchases of investments	(14)	0	(15)
Net cash used in investing activities	(241)	(5,885)	(652)
Cash flows from financing activities:
Proceeds from term loan borrowings	0	4,600	0
Proceeds from issuance of convertible senior notes	0	1,000	0
Debt repayments	1,639	12	0
Payment of assumed debt	(178)	0	0
Debt issuance costs	0	124	2
Excess tax benefits from share-based compensation	125	39	17
Dividend payments to shareholders	(408)	(284)	(198)
Issuance of ordinary shares	241	124	101
Repurchase of ordinary shares	0	12	95
Other	0	(2)	8
Net cash (used in) provided by financing activities	(1,859)	5,329	(169)
Net change in cash and cash equivalents	218	619	(99)
Cash and cash equivalents at the beginning of year	1,604	985	1,084
Cash and cash equivalents at end of year	1,822	1,604	985
Supplemental disclosure of cash flow information:
Cash paid for interest	172	78	1
Cash paid for income taxes, net of refunds	$ 138	$ 23	$ 6

Consolidated Statements of Shareholders' Equity Statement (USD $) In Millions, except Share data, unless otherwise specified	Total	Ordinary Shares	Retained Earnings	Accumulated Other Comprehensive Income (loss)
Total shareholders' equity, Beginning Balance at Oct. 28, 2012	$ 2,419	$ 1,479	$ 951	$ (11)
Ordinary Shares, Shares, Beginning Balance at Oct. 28, 2012		245,477,491
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of ordinary shares in connection with equity incentive plans, Shares		6,198,818
Issuance of ordinary shares in connection with equity incentive plans, Amount	101	101
Repurchase of ordinary shares, Shares		(2,576,131)
Repurchase of ordinary shares, Amount	(95)	(95)
Share-based compensation	77	77
Tax benefits from share-based compensation	25	25
Cash dividends paid to shareholders	(198)		(198)
Changes in accumulated other comprehensive income (loss):
Change in unrealized gain on available-for-sale investment	(3)			(3)
Actuarial gains and prior service costs associated with post-retirement benefit and defined benefit pension plans, net of taxes	8			8
Net income	552
Total shareholders' equity, Ending Balance at Nov. 03, 2013	2,886	1,587	1,305	(6)
Ordinary Shares, Shares, Ending Balance at Nov. 03, 2013		249,100,178
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of ordinary shares in connection with equity incentive plans, Shares		5,500,259
Issuance of ordinary shares in connection with equity incentive plans, Amount	124	124
Repurchase of ordinary shares, Shares		(269,807)
Repurchase of ordinary shares, Amount	(12)	(12)
Share-based compensation	163	163
Tax benefits from share-based compensation	42	42
Cash dividends paid to shareholders	(284)		(284)
Convertible debt conversion feature	85	85
Fair value of partially vested equity awards assumed in connection with acquisition	20	20
Changes in accumulated other comprehensive income (loss):
Actuarial gains and prior service costs associated with post-retirement benefit and defined benefit pension plans, net of taxes	(44)			(44)
Net income	263
Total shareholders' equity, Ending Balance at Nov. 02, 2014	3,243	2,009	1,284	(50)
Ordinary Shares, Shares, Ending Balance at Nov. 02, 2014	254,330,630	254,330,630
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of ordinary shares in connection with equity incentive plans, Shares		8,168,423
Issuance of ordinary shares in connection with equity incentive plans, Amount	241	241
Share-based compensation	237	237
Tax benefits from share-based compensation	130	130
Cash dividends paid to shareholders	(408)		(408)
Stock Issued During Period, Shares, Conversion of Convertible Securities		13,760,067
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments	(75)	(75)
Fair value of partially vested equity awards assumed in connection with acquisition	5	5
Changes in accumulated other comprehensive income (loss):
Actuarial gains and prior service costs associated with post-retirement benefit and defined benefit pension plans, net of taxes	(23)			(23)
Net income	1,364
Total shareholders' equity, Ending Balance at Nov. 01, 2015	$ 4,714	$ 2,547	$ 2,240	$ (73)
Ordinary Shares, Shares, Ending Balance at Nov. 01, 2015	276,259,120	276,259,120

Overview	12 Months Ended
Overview	Nov. 01, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Overview	Overview Avago Technologies Limited, or the "Company", was organized under the laws of the Republic of Singapore in August 2005. We are a designer, developer and global supplier of a broad range of semiconductor devices with a focus on analog III-V based products and complex digital and mixed signal complementary metal oxide semiconductor, or CMOS, based devices. We have a history of innovation and offer thousands of products that are used in end products such as smartphones, hard disk drives, computer servers, consumer appliances, data networking and telecommunications equipment, enterprise storage and servers, and factory automation and industrial equipment. We have four reportable segments: wireless communications, enterprise storage, wired infrastructure and industrial & other, which align with our target markets. References herein to "the Company", "we", "our", "us" and "Avago" are to Avago Technologies Limited and its consolidated subsidiaries, unless otherwise specified or the context otherwise requires. During fiscal years 2015, 2014 and 2013 we made several acquisitions to enhance our competitive position. In fiscal year 2015, we acquired Emulex Corporation, or Emulex, for a purchase price of $587 million. In fiscal year 2014, we acquired PLX Technology, Inc., or PLX, for $308 million. During fiscal year 2014, we also acquired LSI Corporation, or LSI, a company that provides high-performance storage and networking semiconductors used in hard disk drives, solid state drives, communication systems, computer servers, storage systems and personal computers, for a purchase price of $6,518 million. In fiscal year 2013, we acquired CyOptics, Inc., or CyOptics, for a purchase price of $377 million. In connection with these acquisitions, we disposed of components of these businesses that were not aligned with our strategic objectives. In fiscal year 2015, we sold Emulex's network visibility products business, referred to as Endace, for an immaterial amount. During fiscal year 2015, we also sold LSI’s Axxia Networking Business and related assets, or the Axxia Business, to Intel Corporation, or Intel, for $650 million. In fiscal year 2014, we sold LSI's Flash Components Division and Accelerated Solutions Division, or the Flash Business, to Seagate Technology LLC, or Seagate, for $450 million. On May 28, 2015, we entered into an Agreement and Plan of Merger, or the Broadcom Agreement, by and among Broadcom Corporation, or Broadcom, Pavonia Limited, a limited company incorporated under the laws of the Republic of Singapore, or Holdco, Safari Cayman L.P., an exempted limited partnership formed under the laws of the Cayman Islands and a direct wholly-owned subsidiary of Holdco, or the Partnership, Avago Technologies Cayman Holdings Ltd., an exempted company incorporated under the laws of the Cayman Islands and a direct wholly-owned subsidiary of the Partnership, or Intermediate Holdco, Avago Technologies Cayman Finance Limited, an exempted company incorporated under the laws of the Cayman Islands and a direct wholly-owned subsidiary of Intermediate Holdco, or Finance Holdco, Buffalo CS Merger Sub, Inc., a California corporation and wholly-owned subsidiary of Finance Holdco, and Buffalo UT Merger Sub, Inc., a California corporation and wholly-owned subsidiary of Finance Holdco, which provides for a proposed business combination transaction between us and Broadcom, or the Broadcom Transaction. This pending transaction is discussed in further detail in Note 3. "Acquisitions and Investments." The consolidated financial statements include the results of operations of Emulex, PLX, LSI, CyOptics and other acquisitions commencing as of their respective acquisition dates. The results of operations for the Endace, Axxia and Flash Businesses are presented as discontinued operations in our consolidated statements of operations.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References+ Details

Summary of Significant Accounting Policies

12 Months Ended

Nov. 01, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of presentation. We operate on a 52- or 53-week fiscal year ending on the Sunday closest to October 31. Our fiscal year ended November 1, 2015, or fiscal year 2015, was a 52-week fiscal year. The first quarter of our fiscal year 2015 ended on February 1, 2015, the second quarter ended on May 3, 2015 and the third quarter ended on August 2, 2015. Our fiscal year ended November 2, 2014, or fiscal year 2014, was a 52-week fiscal year. Our fiscal year ended November 3, 2013, or fiscal year 2013, was a 53-week fiscal year, with the first fiscal quarter containing 14 weeks.

Our consolidated financial statements include the accounts of Avago and our wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Certain amounts in the consolidated financial statements and notes to the consolidated financial statements for the prior years have been reclassified to conform to the fiscal year 2015 presentation.

Foreign currency remeasurement. We operate in a U.S. dollar functional currency environment. As such, foreign currency assets and liabilities are remeasured into U.S. dollars at current exchange rates except for non-monetary items such as inventory and property, plant and equipment, which are remeasured at historical exchange rates. The effects of foreign currency remeasurement were not material for any period presented.

Use of estimates. The preparation of financial statements in conformity with generally accepted accounting principles in the United States, or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods.

Cash and cash equivalents. We consider all highly liquid investment securities with original or remaining maturities of three months or less at the date of purchase to be cash equivalents. We determine the appropriate classification of our cash and cash equivalents at the time of purchase. Cash equivalents included $490 million and $589 million of time deposits as of November 1, 2015 and November 2, 2014, respectively. As of November 1, 2015 and November 2, 2014, cash equivalents also included $100 million and $393 million of money-market funds, respectively. For time deposits, carrying value approximates fair value due to the short-term nature of the instruments. The fair value of money-market funds as of November 1, 2015 and November 2, 2014 is determined using unadjusted prices in active, accessible markets for identical assets, as such they are classified as Level 1 assets, as defined within "Fair value measurement" in this note below.

Trade accounts receivable, net. Trade accounts receivable are recognized at the invoiced amount and do not bear interest. Accounts receivable are reduced by an allowance for doubtful accounts, which is our best estimate of the amount of probable credit losses in our existing accounts receivable. We determine the allowance based on customer-specific experience and the aging of such receivables, among other factors. Allowances for doubtful accounts were $3 million and $2 million as of November 1, 2015 and November 2, 2014, respectively. Accounts receivable are also recognized net of sales returns and distributor allowances. These amounts are recognized when it is both probable and estimable that discounts will be granted or products will be returned. Allowances for sales returns and distributor allowances at November 1, 2015 and November 2, 2014 were $72 million and $63 million, respectively.

Concentrations of credit risk and significant customers. Our cash, cash equivalents and accounts receivable are potentially subject to concentration of credit risk. Cash and cash equivalents may be redeemable upon demand and are maintained with several financial institutions that management believes are of high credit quality and therefore bear minimal credit risk. We seek to mitigate our credit risks by spreading such risks across multiple counterparties and monitoring the risk profile of these counterparties. Our accounts receivable are derived from revenue earned from customers located both within and outside the U.S. We mitigate collection risks from our customers by performing regular credit evaluations of our customers’ financial conditions, and require collateral, such as letters of credit and bank guarantees, in certain circumstances.

We sell our products through our direct sales force, distributors and manufacturers representatives. One direct customer accounted for 33% and 30% of our net accounts receivable balance at November 1, 2015 and November 2, 2014, respectively. One direct customer represented 24%, 20% and 18% of our net revenue in fiscal years 2015, 2014 and 2013, respectively. The majority of the revenue from this customer was included in our wireless communications segment.

Concentration of other risks. The semiconductor industry is characterized by rapid technological change, competitive pricing pressures and cyclical market patterns. Our financial results are affected by a wide variety of factors, including general economic conditions worldwide, economic conditions specific to the semiconductor industry, timely implementation of new manufacturing technologies, ability to safeguard patents and other intellectual property in a rapidly evolving market and reliance on assembly and test subcontractors, third-party wafer fabricators and independent distributors. In addition, the semiconductor market has historically been cyclical and subject to significant economic downturns at various times. We are exposed to the risk of obsolescence of our inventory depending on the mix of future business.

Inventory. We value our inventory at the lower of the actual cost of the inventory or the current estimated market value of the inventory, with cost being determined under the first-in, first-out method. We record a provision for excess and obsolete inventory based primarily on our forecast of product demand and production requirements. The excess balance determined by this analysis becomes the basis for our excess inventory charge and the written-down value of the inventory becomes its cost. Written-down inventory is not written up if market conditions improve.

Investments. We determine the appropriate classification of our investments at the time of acquisition and re-evaluate such determination at each balance sheet date. We classify our investments as current or non-current based on the intent of management, the nature of the investments and whether they are readily available for use in current operations.

Our minority investments in privately-held companies are accounted for using the cost method and evaluated for impairment quarterly. Such analysis requires significant judgment to identify events or circumstances that would likely have a significant other-than-temporary adverse effect on the carrying value of the investment.

At the time of purchase, we classify investments in marketable equity or debt securities, including warrants to acquire such securities, as held by us, as available-for-sale securities or trading securities. These investments are presented on the consolidated balance sheets at fair value. Unrealized gains and losses on available-for-sale securities are included as a separate component of accumulated other comprehensive income (loss). Unrealized gains and losses on trading securities are included in current operating results in other income, net. Pre-tax realized gains and losses on marketable equity or debt securities sold are determined based on the specific identification method and are included in current operating results in other income, net.

At November 1, 2015, we had $21 million and $27 million of investments included in current and other long-term assets, respectively. At November 2, 2014, we had $24 million and $28 million of investments included in current and other long-term assets, respectively.

Retirement benefits. Post-retirement assets and liabilities are estimates of benefits that we expect to pay to eligible retirees. We consider various factors in determining the value of our post-retirement net assets, including the number of employees that we expect to receive benefits and other actuarial assumptions.

For defined benefit pension plans, we consider various factors in determining our respective pension liabilities and net periodic benefit costs, including the number of employees that we expect to receive benefits, their salary levels and years of service, the expected return on plan assets, the discount rate, the timing of the payment of benefits, and other actuarial assumptions. If the actual results and events of the pension plans differ from our current assumptions, the benefit obligations may be over- or under-valued.

The key benefit plan assumptions are the discount rate and the expected rate of return on plan assets. The assumptions discussed below are for the U.S. retirement benefit plans. For the non-U.S. plans, we chose assumptions specific to each country.

The U.S. discount rates are based on the results of matching expected plan benefit payments with cash flows from a hypothetical yield curve constructed with high-quality corporate bond yields. We base the salary increase assumptions on historical experience and future expectations. In developing the expected rate of return, we consider long-term compound annualized returns based on historical market data, historical and expected returns on the various categories of plan assets, and the target investment portfolio allocation among debt, equity securities and other investments.

Derivative instruments. We are subject to foreign currency risks for transactions denominated in foreign currencies, primarily the Singapore Dollar, Malaysian Ringgit, Euro and Japanese Yen. Therefore, we enter into foreign exchange forward contracts to manage financial exposures resulting from the changes in the exchange rates of these foreign currencies. These contracts are designated at inception as hedges of the related foreign currency exposures, which include committed and forecasted revenue and expense transactions that are denominated in currencies other than the functional currency of the subsidiary which has the exposure. We exclude time value from the measurement of effectiveness. To achieve hedge accounting, contracts must reduce the foreign currency exchange rate risk otherwise inherent in the amount and duration of the hedged exposures and comply with established risk management policies; our hedging contracts generally mature within three months. We do not use derivative financial instruments for speculative or trading purposes.

We designate our forward contracts as either cash flow or fair value hedges. All derivatives are recognized on the consolidated balance sheets at their fair values. For derivative instruments that are designated and qualify as fair value hedges, changes in value of the instruments are recognized in income in the current period. Such hedges are recognized in net income and are offset by the changes in fair value of the underlying assets or liabilities being hedged. For derivative instruments that are designated and qualify as cash flow hedges, changes in the value of the effective portion of the derivative instrument are recognized in accumulated other comprehensive income (loss), a component of shareholders’ equity. These amounts are then reclassified and recognized in net income when either the forecasted transaction occurs or it becomes probable the forecasted transaction will not occur. Changes in the fair value of the ineffective portion of derivative instruments are recognized in net income in the current period, which have not been significant to date. The impact of derivative instruments is immaterial to our consolidated financial statements for all periods presented.

Property, plant and equipment. Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Additions, improvements and major renewals are capitalized, and maintenance, repairs and minor renewals are expensed as incurred. Assets are held in construction in progress until placed in service, upon which date, we begin to depreciate these assets. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from our property, plant and equipment balances and the resulting gain or loss is reflected in the consolidated statements of operations. Buildings and leasehold improvements are generally depreciated over 15 to 40 years, or over the lease period, whichever is shorter, and machinery and equipment are generally depreciated over three to ten years. We use the straight-line method of depreciation for all property, plant and equipment.

Fair value measurement. Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy is applied to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy under the guidance for fair value measurements are described below:

Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Our Level 1 assets include cash equivalents, banker's acceptances, trading securities investments and investment funds (i.e., deferred compensation plan assets). We measure trading securities investments and investment funds at quoted market prices as they are traded in an active market with sufficient volume and frequency of transactions.

Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified contractual term, a Level 2 input must be observable for substantially the full term of the asset or liability. We consider our Convertible Notes to be Level 2 liabilities in the fair value hierarchy as the estimated fair value is measured based on the market prices observable for similar instruments.

Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. Level 3 assets and liabilities include cost method investments, goodwill, amortizable intangible assets, and property, plant and equipment, which are measured at fair value using a discounted cash flow approach when they are impaired. Quantitative information for Level 3 assets and liabilities reviewed at each reporting period includes indicators of significant deterioration in the earnings performance, credit rating, asset quality, business prospects of the investee, and financial indicators of the investee's ability to continue as a going concern.

Business combinations. We account for business combinations under the acquisition method of accounting, which requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in our consolidated statements of operations.

Accounting for business combinations requires our management to make significant estimates and assumptions, especially at the acquisition date including our estimates for intangible assets, contractual obligations assumed, restructuring liabilities, pre-acquisition contingencies, and contingent consideration, where applicable. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Critical estimates in valuing certain of the intangible assets we have acquired include future expected cash flows from product sales, customer contracts and acquired technologies, expected costs to develop in-process research and development into commercially viable products and estimated cash flows from the projects when completed and discount rates. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results.

Goodwill. Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is reviewed annually (or more frequently if impairment indicators arise) for impairment. To review the impairment we first assess qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount. Our qualitative assessment of the recoverability of goodwill, whether performed annually or based on specific events or circumstances, considers various macroeconomic, industry-specific and company-specific factors. Those factors include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of our financial performance; or (iv) a sustained decrease in our market capitalization below our net book value. After assessing the totality of events and circumstances, if we determine that it is not more likely than not that the fair value of any of our reporting units is less than its carrying amount, no further assessment is performed. If we determine that it is more likely than not that the fair value of any of our reporting units is less than its carrying amount, we calculate the fair value of that reporting unit and compare the fair value to the reporting unit’s net book value. If the fair value of the reporting unit is greater than its net book value, there is no impairment. Otherwise, we calculate the implied fair value of goodwill by deducting the fair value of all tangible and intangible assets, excluding goodwill, of the reporting unit from the fair value of the reporting unit. The implied fair value of goodwill is compared to the carrying value of goodwill. If the implied fair value of goodwill is less than the carrying value of goodwill, an impairment loss is recognized equal to the difference.

Long-lived assets. Purchased finite-lived intangible assets are carried at cost less accumulated amortization. Amortization is recognized over the periods during which the intangible assets are expected to contribute to our cash flows. Purchased in-process research and development, or IPR&D, projects are capitalized at fair value as an indefinite lived intangible asset and assessed for impairment thereafter. Upon completion of each underlying project, IPR&D assets are reclassified as an amortizable purchased intangible asset and amortized over their estimated useful lives. If an IPR&D project is abandoned, we recognize the carrying value of the related intangible asset in our consolidated statements of operations in the period it is abandoned. On a quarterly basis, we monitor factors and changes in circumstances that could indicate carrying amounts of long-lived assets, including purchased intangible assets, and property, plant and equipment, may not be recoverable. Factors we consider important which could trigger an impairment review include (i) significant under-performance relative to historical or projected future operating results, (ii) significant changes in the manner of our use of the acquired assets or the strategy for our overall business, and (iii) significant negative industry or economic trends. An impairment loss must be measured if the sum of the expected future cash flows (undiscounted and before interest) from the use and eventual disposition of the asset (or asset group) is less than the net book value of the asset (or asset group). The amount of the impairment loss will generally be measured as the difference between the net book value of the asset (or asset group) and the estimated fair value. There was no impairment of long-lived assets including purchased intangible assets for the periods presented.

Warranty. We accrue for the estimated costs of product warranties at the time revenue is recognized. Product warranty costs are estimated based upon our historical experience and specific identification of the products requirements, which may fluctuate based on product mix. Additionally, we accrue for warranty costs associated with occasional or unanticipated product quality issues if a loss is probable and can be reasonably estimated.

The following table summarizes the changes in accrued warranty (in millions):



Balance as of November 3, 2013 — included in other current liabilities	$	2
Liabilities assumed in acquisitions	11
Warranty release to cost of products sold	(4		)
Utilized	(1		)
Balance as of November 2, 2014 — included in other current liabilities	8
Liabilities assumed in acquisitions	3
Warranty provision in cost of products sold	6
Utilized	(1		)
Balance as of November 1, 2015 — included in other current liabilities	$	16

Revenue recognition. We recognize revenue related to sales of our products, net of trade discounts and allowances, provided that (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title and risk of loss have transferred, (iii) the price is fixed or determinable and (iv) collectibility is reasonably assured. We consider the price to be determinable when the price is not subject to refund or adjustments or when any such adjustments can be estimated. We evaluate the creditworthiness of our customers to determine that appropriate credit limits are established prior to the acceptance of an order. Revenue, including sales to resellers and distributors, is reduced for estimated returns and distributor allowances. We recognize revenue from sales of our products to distributors upon delivery of products to the distributors. An allowance for distributor credits covering price adjustments and scrap allowances is made based on our estimate of historical experience rates as well as considering economic conditions and contractual terms. To date, actual distributor claim activity has been materially consistent with the provisions we have made based on our historical estimates.

We enter into development agreements with some of our customers and recognize revenue from these agreements upon completion and acceptance by the customer of contract deliverables or as services are provided, depending on the terms of the arrangement. Revenue is deferred for any amounts billed or received prior to completion or delivery of services. As we retain the intellectual property generated from these development agreements, costs related to these arrangements are included in research and development expense.

We recognize revenue from the sales and licensing of our intellectual property when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the sales price is fixed or determinable, and (iv) collection of resulting receivables is reasonably assured. Revenue from upfront payments for the licensing of our patents is recognized when the arrangement is mutually signed, if there is no future delivery or future performance obligation and all other criteria are met. Revenue from guaranteed royalty streams are recognized when paid, or collection is reasonably assured and all other criteria are met. When patent licensing arrangements include royalties for future sales of the licensees’ products using our licensed patented technology, revenue is recognized when the royalty report is received from the licensee, at which time the sales price is determinable, provided that all other criteria have been met.

Research and development. Research and development expense consists primarily of personnel costs for our engineers and third parties engaged in the design and development of our products, software and technologies, including salary, bonus and share-based compensation expense, project material costs, services and depreciation. Such costs are charged to research and development expense as they are incurred.

Government grants. Investment incentives related to government grants are recognized when a legal right to the grant exists, there is reasonable assurance that both the terms and conditions associated with the grant will be fulfilled and the grant proceeds will be received. For government grants related to capital expenditures, the amount of the grant is deferred, and amortized over the useful life of the asset and is reflected in the consolidated statements of cash flows as a financing activity. All other government grants are recognized as a reduction of the qualifying cost being reimbursed and are reflected in the consolidated statements of cash flows as an operating activity.

Share-based compensation expense. Share-based compensation expense is measured at the grant date, based on the estimated fair values of the awards, net of estimated forfeitures. We use the Black-Scholes option pricing model to determine the estimated fair value for time-based options and employee share purchase plan rights and amortize the share-based compensation expense under the straight-line amortization method over the vesting period. We use the Monte Carlo simulation method to determine the estimated fair value for share price performance, or market-based, awards and amortize the share-based compensation expense under the graded vesting method over the service period. We recognize a benefit from share-based compensation in shareholders' equity if an incremental tax benefit is realized by following the ordering provisions of the tax law.

Shipping and handling costs. Our shipping and handling costs charged to customers are included in net revenue and the associated expense is included in cost of products sold in the consolidated statements of operations for all periods presented.

Advertising. Advertising costs are expensed as incurred and included within selling, general and administrative expense. Advertising costs were not material for fiscal years 2015, 2014 or 2013.

Litigation and settlement cost. We are involved in legal actions and other matters arising in our recent business acquisitions and in the normal course of business. We recognize an estimated loss contingency when the outcome is probable prior to issuance of the consolidated financial statements and we are able to reasonably estimate the amount or range of any possible loss.

Taxes on income. We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We recognize net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. If we determine that we are able to realize our deferred income tax assets in the future in excess of their net carrying values, we adjust the valuation allowance and reduce the provision for income taxes. Likewise, if we determine that we are not be able to realize all or part of our net deferred tax assets, we increase the provision for income taxes in the period such determination is made.

We account for uncertainty in income taxes in accordance with the applicable accounting guidance on income taxes. This guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

Net income per share. Basic net income per share is computed using the weighted-average number of ordinary shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of ordinary shares and potentially dilutive share equivalents outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money options, restricted share units, or RSUs, employee share purchase rights under the Avago Technologies Limited Employee Share Purchase Plan, or ESPP, (collectively referred to as equity awards) and the 2% Convertible Senior Notes issued by Avago Technologies Limited, or the Convertible Notes. The dilutive effect of equity awards is calculated based on the average share price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising share options and to purchase shares under the ESPP, the amount of compensation cost for future service that we have not yet recognized, and the amount of tax benefits that would be recognized when equity awards become deductible for income tax purposes are collectively assumed to be used to repurchase ordinary shares.

The dilutive effect of the Convertible Notes was calculated using the treasury stock method based on our assumption that the Convertible Notes would be settled in cash. The treasury stock method assumed that the carrying value of the Convertible Notes represented proceeds, since settlement of the Convertible Notes tendered for conversion could be settled with cash, ordinary shares or a combination of both at our option. During fiscal year 2015, the Convertible Notes were converted in full and settled with a combination of cash and 13.8 million of our ordinary shares. The incremental ordinary shares attributable to the conversion were a component of diluted shares for the period prior to the settlement and a component of basic weighted-average shares outstanding subsequent to the conversion.

There were no material antidilutive equity awards for fiscal year 2015. Diluted net income per share for fiscal years 2014 and 2013 excluded the potentially dilutive effect of weighted-average outstanding equity awards (options, RSUs, and ESPP rights) to purchase 1 million and 2 million ordinary shares, respectively, as their effect was antidilutive.

The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented (in millions, except per share data):



	Fiscal Year
	2015			2014			2013
Net income (Numerator):
Income from continuing operations	$	1,391		$	309		$	552
Loss from discontinued operations, net of income taxes	(27		)	(46		)	—
Net income	$	1,364		$	263		$	552

Shares (Denominator):
Basic weighted-average ordinary shares outstanding	264			251			247
Add incremental shares for:
Dilutive effect of share options, RSUs and ESPP rights	9			8			5
Dilutive effect of Convertible Notes	8			8			—
Shares used in diluted computation	281			267			252

Basic income per share:
Income per share from continuing operations	$	5.27		$	1.23		$	2.23
Loss per share from discontinued operations, net of income taxes	(0.10		)	(0.18		)	—
Net income per share	$	5.17		$	1.05		$	2.23

Diluted income per share:
Income per share from continuing operations	$	4.95		$	1.16		$	2.19
Loss per share from discontinued operations, net of income taxes	(0.10		)	(0.17		)	—
Net income per share	$	4.85		$	0.99		$	2.19

Recently Adopted Accounting Guidance

In fiscal year 2015, we adopted guidance that raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. The impact on presentation of our results of operations, disclosures of discontinued operations and disposals of individually significant components are reflected in our consolidated financial statements presented herein and did not have a material impact on our consolidated results of operations.

In fiscal year 2015, we adopted guidance related to the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The guidance requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss or a tax credit carryforward exists and certain criteria are met. The adoption of this guidance did not have a material impact on our consolidated balance sheets.

Recent Accounting Guidance Not Yet Adopted

In November 2015, the Financial Accounting Standards Board, or FASB, issued authoritative guidance that simplifies the presentation of deferred tax assets and liabilities in a classified balance sheet. This guidance eliminates the current requirement to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, all deferred tax assets and liabilities will be required to be classified as non-current. This guidance will be effective for the first quarter of our fiscal year 2018, with early application permitted. We plan to early adopt this guidance in the first quarter of fiscal year 2016. As of November 1, 2015, we have approximately $116 million of net current deferred tax assets that will be classified as long-term upon adoption.

In September 2015, the FASB issued authoritative guidance that requires an acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance also requires disclosure of the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the adjustment to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This guidance will be effective for the first quarter of our fiscal year 2017. We are currently evaluating the impact that this guidance will have on our financial condition and results of operations.

In August 2015, the FASB deferred the effective date of the authoritative guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This guidance will become effective for the first quarter of our fiscal year 2019. Early adoption is permitted, but not before the first quarter of our fiscal year 2018. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. We have not yet selected a transition method and are currently evaluating the impact of this guidance on our consolidated financial statements.

In July 2015, the FASB issued an amendment to the accounting guidance related to the measurement of inventory. The amendment revises inventory to be measured at lower of cost and net realizable value from lower of cost or market. Subsequent measurement is unchanged for inventory measured using last-in, first-out (LIFO) or the retail inventory method. This guidance will be effective prospectively for the first quarter of our fiscal year 2018, with early application permitted. We are currently evaluating the impact that this guidance will have on our consolidated financial statements.

In April 2015, the FASB issued an amendment to the accounting guidance related to the financial statement presentation of debt issuance costs. The new guidance is required to be applied retrospectively to each prior reporting period presented. The guidance requires debt issuance costs to be presented on the balance sheet as a direct reduction to the carrying amount of debt, consistent with debt discounts or premiums. This guidance will be effective for the first quarter of our fiscal year 2017, with early application permitted. The adoption of this guidance will not have a material effect on our consolidated balance sheet presentation.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

Acquisitions and Investments

12 Months Ended

Nov. 01, 2015

Business Combinations [Abstract]

Acquisitions and Investments

Acquisition Summary

On May 5, 2015, we acquired Emulex for a purchase price of $587 million. On October 31, 2015, we sold Emulex's network visibility products business, Endace, for an immaterial amount.

On May 6, 2014, we acquired LSI for a purchase price of $6,518 million. On September 2, 2014, we sold LSI's Flash Business to Seagate for $450 million. On November 18, 2014, we sold LSI’s Axxia Business to Intel for $650 million.

In August 2014, we acquired PLX for a purchase price of $308 million. On June 28, 2013, we acquired CyOptics, Inc., or CyOptics for a purchase price of $377 million. In addition, in each of fiscal years 2014 and 2013, we made one additional acquisition that was immaterial to our consolidated results of operations.

The consolidated financial statements include the results of operations of Emulex, LSI, PLX, CyOptics and other acquisitions commencing as of their respective acquisition dates. The results of operations for the Endace, Axxia and Flash Businesses are presented as discontinued operations in our consolidated statements of operations. The assets of the Axxia Business were presented as assets held-for-sale on the consolidated balance sheet as of November 2, 2014.

Unaudited pro forma financial information for the Emulex, LSI, PLX and CyOptics acquisitions are presented below. Acquisition related transaction costs such as legal, accounting and other related expense were presented primarily as a component of selling, general and administrative expense in our consolidated statements of operations. During fiscal years 2015, 2014 and 2013, we incurred $26 million, $35 million and $5 million, respectively, in transaction costs related to acquisitions.

Summary of Intangible Assets Acquired and Valuation Methods Used

For each of our acquisitions, the allocation of the purchase price to tangible and identified intangible assets acquired was based on our best estimate of the fair value of such assets as of the respective acquisition dates. The fair value of acquired tangible and identified intangible assets is determined based on inputs that are unobservable and significant to the overall fair value measurement. As such, acquired tangible and intangible assets are classified as Level 3 assets.

Developed technology was valued using the discounted cash flow method. Under this method, the after-tax direct cash flows expected to be generated by the technologies were discounted over their remaining useful lives, net of contributions of other assets to those cash flows. The discount rates used were commensurate with the inherent risks associated with each type of asset and the level and timing of cash flows appropriately reflect market participant assumptions. We valued base product technology that generates cash flows from sales of the existing products using the income approach, specifically the multi-period excess earnings method which calculates the value based on the risk-adjusted present value of the cash flows specific to the products, allowing for a reasonable return. Packaging technology was valued utilizing the relief-from-royalty method, a form of the income approach. The relief-from-royalty method estimates the cost savings that accrue to the owner of an intangible asset that would otherwise be payable as royalties or license fees on revenues earned through the use of the asset. The royalty rate was based on an analysis of empirical, market-derived royalty rate for guideline intangible assets. The economic useful life was determined based on the technology cycle related to each product family and its expected contribution to forecast revenue.

Customer relationships represent the fair value of future projected revenue that is expected to be derived from sales of products to existing customers of our acquired companies. Customer relationships were valued using the with-and-without-method under the income approach. In this method, the fair value is measured by the difference between the present values of the cash flows from the sale with and without the existing customers in place over the period of time necessary to reacquire the customers. The method involves a comparison of the cash flows assuming the customer relationships were in place to cash flows that would be generated if the customer relationships were newly created. The economic useful life was determined based on historical customer turnover rates and the estimated period required to newly develop a similar customer revenue base.

Customer order backlog represents business under existing contractual obligations as of the acquisition date. The fair value of backlog was determined using the multi-period excess earnings method under the income approach based on expected operating cash flows from future contractual revenue. The economic useful life was determined based on the expected life of the backlog and the cash flows over the forecast period.

Trade names relate to our acquirees' product brands and their fair values were determined by applying the relief-from-royalty method under the income approach. This valuation method is based on the application of a royalty rate to forecasted revenue under the respective trade name and involves discounting net cash flows resulting from the forecast of avoided royalties over a transition period, giving consideration to the cost of capital estimate as well as the risk and timing of the cash flows associated with this asset relative to the other asset classes. The economic useful life was determined based on the expected life of the trade names, the history of the trade names and the cash flows anticipated over the forecasted periods.

Patents represent issued patents and patent applications worldwide, and existing licensing contracts. We valued the existing patents associated with new IP licensing contracts using the multi-period excess earnings method under the income approach. The method reflects the present value of the projected cash flows that are expected to be generated by the patents less charges representing the contribution of other assets to those cash flows. We valued the existing IP licensing contracts using the discounted cash flow method under the income approach. The method reflects the present value of the projected cash flows that are expected to be generated by the licensing contracts. The economic useful life was determined based on the actual contractual terms of the existing patents and licensing contracts and the cash flows over the forecasted periods.

IPR&D represents the fair value of incomplete research and development projects that had not reached technological feasibility as of the date of the acquisition. The fair value of IPR&D was determined using the multi-period excess earnings method, a form of the income approach. Under the income approach, the expected future cash flows from each project under development are estimated and discounted to their net present values at an appropriate risk-adjusted rate of return. The acquisition date fair value of IPR&D will be either amortized or impaired depending on whether the projects are completed or abandoned.

Emulex

On May 5, 2015, we acquired Emulex, a leader in network connectivity, monitoring and management. We acquired Emulex to broaden our portfolios to better serve the enterprise storage end market. Total consideration consisted of the following (in millions):



Cash paid to Emulex stockholders	$	582
Fair value of partially vested assumed equity awards	5
Total purchase price	587
Less: cash acquired	188
Total purchase price, net of cash acquired	$	399

We allocated the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of acquisition. During the fourth quarter of fiscal year 2015, we made adjustments to certain tax balances during the measurement period, resulting in an adjustment to goodwill. As additional information becomes available, we may further revise our preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from the acquisition date). Any such revisions or changes may be material.

Our preliminary allocation of the purchase price, net of cash acquired, is as follows (in millions):



Trade accounts receivable	$	50
Inventory	61
Assets held-for-sale	83
Other current assets	7
Property, plant and equipment	28
Goodwill	83
Intangible assets	388
Other long-term assets	14
Accounts payable	(36		)
Employee compensation and benefits	(20		)
Other current liabilities	(15		)
Long-term debt	(178		)
Other long-term liabilities	(66		)
Fair value of net assets acquired	$	399

Goodwill reflected the value of the skilled assembled workforce, sales growth from future new product offerings and services, and the anticipated company-specific synergies that would result from this acquisition. Goodwill is not deductible for tax purposes.

The assets held-for-sale included the former Emulex headquarters and Endace. In September 2015, we sold the Emulex headquarters for $47 million. We sold Endace on October 31, 2015 for an immaterial amount, resulting in a loss on sale of $28 million reported in discontinued operations.

As a result of the acquisition of Emulex, all $175 million aggregate principal amount of Emulex's 1.75% Convertible Senior Notes due November 15, 2018, or Emulex Notes, became convertible at an increased conversion rate under the make-whole fundamental change provision of the Emulex Notes. Subsequent to the closing of the acquisition, we redeemed all of the Emulex Notes, resulting in cash payments of $178 million.

Our results of continuing operations for fiscal year 2015 include $181 million of net revenue attributable to Emulex after May 5, 2015. It is impracticable to determine the effect on net income resulting from the Emulex acquisition for fiscal year 2015, as the Company immediately integrated Emulex into its ongoing operations.

Intangible Assets

Identified intangible assets acquired consisted of the following:



	Fair Value (in millions)		Estimated Useful Lives (in years)
Developed technology	$	227	4
Customer relationships	131		9
Trade names	10		5
Customer order backlog	5		<1
Total identified finite-lived intangible assets	373
In-process research and development	15
Total identified intangible assets	$	388

Developed technology represents technologies in the Fibre Channel and Ethernet product categories that had attained technological feasibility. Customer relationships represent the existing relationships in the network connectivity product lines in the original equipment manufacturer, or OEM, Government and distributor channels.

The following table summarizes the details of the IPR&D projects as of acquisition ($ in millions):



Description	IPR&D		Discount Rate		Percentage of Completion		Estimated Cost to Complete		Expected Release Date (by fiscal year)
Fibre Channel product	$	7	24	%	33	%	$	26	2016
Ethernet product	$	8	26	%	48	%	$	7	2015

Unaudited Pro Forma Information

The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if Emulex had been acquired as of the beginning of fiscal year 2014. The pro forma information excludes results of operations of Endace and includes adjustments primarily for amortization of intangible assets acquired, depreciation of property, plant and equipment acquired, the purchase accounting effect on inventory acquired, share-based compensation expense related to assumed equity awards, restructuring charges in connection with the acquisition and acquisition costs. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2014 or of the results of future operations of the combined business. Consequently, actual results differ from the unaudited pro forma information presented below (in millions, except for per share amounts):



	Fiscal Year
	2015		2014
Pro forma net revenue	$	7,018	$	4,676
Pro forma income from continuing operations	$	1,413	$	143
Pro forma income per share from continuing operations - basic	$	5.35	$	0.57
Pro forma income per share from continuing operations - diluted	$	5.03	$	0.54

LSI

On May 6, 2014, we acquired LSI, a company that provides high-performance storage and networking semiconductors used in hard disk drives, solid state drives, communication systems, computer servers, storage systems and personal computers. We acquired LSI to enhance our competitive position in the enterprise storage market to expand Avago's product offerings and to provide us with system-level expertise in the wired infrastructure market. Total consideration consisted of the following (in millions):



Cash paid to LSI stockholders	$	6,344
Cash paid for options and restricted stock units	154
Fair value of partially vested assumed equity awards	20
Total purchase price	6,518
Less: cash acquired	854
Total purchase price, net of cash acquired	$	5,664

In connection with the LSI acquisition, we assumed stock options and RSUs, originally granted by LSI, and converted them into Avago share options and RSUs. The portion of the fair value of partially vested equity awards associated with prior service of LSI employees represents a component of the total consideration for the LSI acquisition, as presented above. Stock options assumed were valued using the Black-Scholes option pricing model based on the exercise behavior of Avago's employees. RSUs were valued based on Avago’s stock price as of the acquisition date.

Our allocation of the purchase price, net of cash acquired, is as follows (in millions):



	Fair Value
Trade accounts receivable	$	282
Inventory	372
Assets held-for-sale	450
Other current assets	174
Property, plant and equipment	260
Goodwill	1,220
Intangible assets	3,865
Other long-term assets	178
Total assets acquired	6,801
Accounts payable	(207		)
Employee compensation and benefits	(91		)
Other current liabilities	(156		)
Pension and post-retirement benefit obligations	(446		)
Other long-term liabilities	(237		)
Total liabilities assumed	(1,137		)
Fair value of net assets acquired	$	5,664

Goodwill is primarily attributable to the assembled workforce of LSI, anticipated synergies and economies of scale expected from the operations of the combined company. Goodwill is not deductible for tax purposes.

Our results of continuing operations for fiscal year 2014 include $1,050 million of net revenue attributable to LSI after May 6, 2014. It is impracticable to determine the effect on net income resulting from the LSI acquisition for fiscal year 2014, as the Company immediately integrated LSI into its ongoing operations.

On September 2, 2014, we sold the Flash Business to Seagate for $450 million. The Flash Business was classified as assets held-for-sale on our consolidated balance sheet and was carried at fair value less costs to sell through the date of the sale.

On November 18, 2014, we sold the Axxia Business to Intel for $650 million. This transaction did not meet the criteria for assets held-for-sale under the relevant accounting guidance as of May 6, 2014 and therefore the assets of the Axxia Business were not included in assets held-for-sale in the LSI purchase price allocation. The Axxia Business was classified as assets held-for-sale on our consolidated balance sheet as of November 2, 2014 and carried at fair value less costs to sell.

Intangible Assets

Identified intangible assets acquired consisted of the following:



	Fair Value (in millions)		Estimated Useful Lives (in years)
Developed technology	$	1,961	10
Customer relationships	1,415		8
Trade names	178		8
Customer order backlog	106		1
Patents	11		8
In-place lease	2		3
Total identified finite-lived intangible assets	3,673
In-process research and development	192
Total identified intangible assets	$	3,865

Developed technology relates to systems-on-a-chip, read channel, pre-amplifiers, redundant array of independent disk, or RAID, Syncro, Axxia design, standard and customized networking solutions technologies.

LSI's IPR&D projects as of acquisition were as follows ($ in millions):



Description	IPR&D		Percentage of Completion		Estimated Cost to Complete			Expected Release Date (by fiscal year)
SAS controllers for enterprise storage systems	$	97	17	%	$	251	(a)	2016
High speed mix signal transceivers for enterprise and client HDD storage systems - Gen2 and Gen3	$	18	63% and 25%		$	34		2015 and 2017

_________________________________

(a) As of November 1, 2015, the project was 70% complete and the estimated cost to complete the project was $48 million.

In addition, $71 million of LSI's Axxia IPR&D was sold to Intel in connection with the Axxia Business sale on November 18, 2014. A discount rate of 14.5% was applied to the projected cash flows to reflect the risk related to these IPR&D projects in determining their fair values. The discount rate represents a premium of 1% over the weighted-average cost of capital to reflect the higher risk and uncertainty of the cash flows for IPR&D relative to the overall business.

Unaudited Pro Forma Information

The following unaudited pro forma financial information presents combined results of operations for each of the fiscal years presented, as if LSI had been acquired as of the beginning of fiscal year 2013. The pro forma information excludes results of operations of LSI's Flash Business and Axxia Business and includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired, adjustments to share-based compensation expense and interest expense for the additional indebtedness incurred to complete the acquisition, restructuring charges in connection with the acquisition and acquisition costs. The pro forma results for fiscal year 2013 also include amortization of the purchase accounting effect on inventory acquired from LSI. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations of the combined business had the merger actually occurred at the beginning of fiscal year 2013 or of the results of future operations of the combined business. Consequently, actual results differ from the unaudited pro forma information presented below (in millions, except for per share amounts):



	Fiscal Year
	2014		2013
Pro forma net revenue	$	5,277	$	4,556
Pro forma income (loss) from continuing operations	$	533	$	(359	)
Pro forma income (loss) per share from continuing operations - basic	$	2.12	$	(1.45	)
Pro forma income (loss) per share from continuing operations - diluted	$	1.95	$	(1.45	)

PLX

On August 12, 2014, we acquired PLX, a provider of PCI Express, or PCIe, semiconductor and software connectivity solutions. We acquired PLX to broaden our portfolio to better serve the enterprise storage and networking end markets. Total consideration consisted of the following (in millions):



Cash paid to PLX stockholders	$	299
Cash paid for options and restricted stock units	9
Total purchase price	308
Less: cash acquired	11
Total purchase price, net of cash acquired	$	297

Our allocation of the purchase price, net of cash acquired, is as follows (in millions):



	Fair Value
Trade accounts receivable	$	12
Inventory	25
Assets held-for-sale⁽¹⁾	26
Other current assets	4
Property, plant and equipment	7
Goodwill	75
Intangible assets	191
Accounts payable	(5		)
Employee compensation and benefits	(4		)
Other current liabilities	(6		)
Other long-term liabilities	(28		)
Fair value of net assets acquired	$	297

_________________________________

(1) Assets held-for-sale represent a building for the former PLX headquarters.

Goodwill is primarily attributable to the assembled workforce, the return on future technology and customer development. Goodwill is not deductible for tax purposes.

Intangible Assets

Identified intangible assets acquired consisted of the following:



	Fair Value (in millions)		Estimated Useful Lives (in years)
Developed technology	$	118	7
Customer relationships	39		10
Trade names	5		5
Total identified finite-lived intangible assets	162
In-process research and development	29
Total identified intangible assets	$	191

Developed technology represents the fair value of PLX products that had reached technological feasibility and were a part of its product offering, which included PCIe switches, PCIe bridges and connectivity products. Customer relationships represent the fair values of PLX's existing relationships with over 1,000 customers for its PCIe switch/bridge business in the enterprise, PC consumer and industrial/embedded markets.

PLX IPR&D consists of a PCI Express Gen 3 switch with enhanced features to mimic Ethernet and Infiniband products and increase the scope of the fabric. The following table summarizes the details of the IPR&D project as of acquisition ($ in millions):



Project Name	IPR&D		Discount Rate		Percentage of Completion		Estimated Cost to Complete		Expected Release Date (by fiscal year)
PCI ExpressFabric platform for PCIe solid state drives and extension of PCIe use	$	29	21.3	%	70	%	$	5	2015

Unaudited Pro Forma Information

The following unaudited pro forma financial information presents combined results of operations for each of the fiscal years presented, as if PLX had been acquired as of the beginning of fiscal year 2013. The pro forma information includes adjustments to share-based compensation expense, amortization and depreciation for intangible assets and property, plant and equipment acquired. The pro forma results for fiscal year 2013 also include amortization of the purchase accounting effect on inventory acquired from PLX. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations of the combined business had the merger actually occurred at the beginning of fiscal year 2013 or of the results of future operations of the combined business. Consequently, actual results differ from the unaudited pro forma information presented below (in millions, except for per share amounts):



	Fiscal Year
	2014		2013
Pro forma net revenue	$	4,353	$	2,624
Pro forma income from continuing operations	$	302	$	525
Pro forma income per share from continuing operations - basic	$	1.20	$	2.12
Pro forma income per share from continuing operations - diluted	$	1.13	$	2.08

CyOptics

On June 28, 2013, we acquired CyOptics, a U.S.-based company that manufactures and sells Indium Phosphide, or InP, optical chip and component technologies for the data communications and telecommunications markets, for approximately $377 million, of which $373 million was paid in cash, net of $3 million in cash acquired. CyOptics had front-end manufacturing operations in the U.S. and back-end manufacturing operations in Mexico. During fiscal year 2014, we paid $4 million of additional deferred consideration to the previous shareholders of CyOptics. In addition, approximately $27 million was payable to key employees of CyOptics as part of a retention bonus plan, of which $22 million had been paid as of November 1, 2015. This amount was paid into escrow, will be paid to those employees over a three-year period subsequent to the acquisition date and is being recognized as compensation expense over the same period. For eligible CyOptics employees whose employment is involuntarily terminated by the Company, their retention bonus payments are accelerated and due in full upon such termination in accordance with the provisions of the plan. During fiscal year 2014, we recognized compensation expense of $10 million due to the departure of certain plan participants. The compensation expense recognized for the fiscal year 2015 was not material.

We acquired CyOptics to strengthen our fiber optics product portfolio for emerging 40G and 100G enterprise and data center applications, through CyOptics' single-mode InP laser, receiver and photonics integration capability and for their optical components business, which serves segments of the access, metro and long-haul markets. The purchase price for CyOptics was determined based on cash flow projections assuming the integration of any acquired technology and products with our own, which were of considerably greater value than utilizing CyOptics’ technology or products on a standalone basis, as well as the assembled workforce of CyOptics. These factors, among others, contributed to a purchase price in excess of the estimated fair value of the net identifiable assets acquired, and, as a result, we recognized goodwill in connection with this transaction, which is not deductible for tax purposes.

Our allocation of the purchase price, net of cash acquired was as follows (in millions):



	Fair Value
Trade accounts receivable	$	51
Inventory	35
Other current assets	2
Property, plant and equipment	44
Goodwill	190
Intangible assets	141
Total assets acquired	463
Accounts payable	(25		)
Employee compensation and benefits	(5		)
Other current liabilities	(2		)
Long-term deferred tax liabilities (included in other long-term liabilities)	(54		)
Total liabilities assumed	(86		)
Fair value of net assets acquired	$	377

There were no significant contingencies assumed as part of the acquisition. As of November 1, 2015, we had a $5 million indemnification receivable in other long-term assets for tax positions related to CyOptics value added tax and income taxes payable existing prior to the acquisition. Our results of operations for fiscal year 2013 include $85 million of net revenue attributable to CyOptics.

Intangible Assets

Identified intangible assets acquired consisted of the following:



	Fair Value (in millions)		Estimated Useful Lives (in years)
Purchased technology - base product	$	98	8
Purchased technology - packaging	3		5
Customer relationships	32		7
Customer backlog	4		1
Total identified finite-lived intangible assets	137
In-process research and development	4
Total identified intangible assets	$	141

Unaudited Pro Forma Information

The following table presents certain unaudited pro forma financial information for fiscal year 2013 as if CyOptics had been acquired as of the beginning of fiscal year 2012. The unaudited pro forma information combines the historical results of CyOptics with our consolidated historical results and includes certain fair value adjustments reflecting the estimated impact of amortization of intangible assets acquired and depreciation of acquired property, plant and equipment. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2012 or of the results of future operations of the combined business. Consequently, actual results differ from the unaudited pro forma information presented below (in millions, except for per share amounts):



	Fiscal Year
	2013
Pro forma net revenue	$	2,663
Pro forma net income	$	547
Pro forma net income per share-basic	$	2.21
Pro forma net income per share-diluted	$	2.17

Pending Acquisition of Broadcom Corporation

On May 28, 2015, we entered into an Agreement and Plan of Merger, or the Broadcom Agreement, by and among Broadcom Corporation, or Broadcom, Pavonia Limited, a limited company incorporated under the laws of the Republic of Singapore, or Holdco, Safari Cayman L.P., an exempted limited partnership formed under the laws of the Cayman Islands and a direct wholly-owned subsidiary of Holdco, or the Partnership, Avago Technologies Cayman Holdings Ltd., an exempted company incorporated under the laws of the Cayman Islands and a direct wholly-owned subsidiary of the Partnership, or Intermediate Holdco, Avago Technologies Cayman Finance Limited, an exempted company incorporated under the laws of the Cayman Islands and a direct wholly-owned subsidiary of Intermediate Holdco, or Finance Holdco, Buffalo CS Merger Sub, Inc., a California corporation and wholly-owned subsidiary of Finance Holdco, and Buffalo UT Merger Sub, Inc., a California corporation and wholly-owned subsidiary of Finance Holdco, which provides for a proposed business combination transaction between us and Broadcom, or the Broadcom Transaction.

As a result of the Broadcom Transaction, at closing, each share of Broadcom common stock will be converted into the right to receive, at the election of each holder of such Broadcom common stock and subject to pro-ration in accordance with the Broadcom Agreement, cash or equity interests in either Holdco or the Partnership. Upon the terms and subject to the conditions set forth in the Broadcom Agreement, Broadcom shareholders will have the ability to elect to receive, with respect to each issued and outstanding share of Broadcom common stock: (a) $54.50 per share in cash; (b) 0.4378 freely-tradable ordinary shares in Holdco; or (c) 0.4378 exchangeable limited partnership units in the Partnership, or restricted exchangeable units, that are designed to be the economic equivalent of 0.4378 ordinary shares of Holdco, which cannot be transferred, sold or hedged for a period of one to two years after closing and which will be subject to related anti-hedging prohibitions. The foregoing exchange ratios are fixed. The shareholder election will be subject to a pro-ration mechanism, which is anticipated to result in payment, in the aggregate, of approximately $17 billion in cash consideration and the economic equivalent of approximately 140 million of our ordinary shares (assuming no more than 50% of outstanding shares of Broadcom common stock elect restricted exchangeable units), resulting in Broadcom shareholders owning approximately 33% of the combined company. Based on the closing share price of our ordinary shares as of May 27, 2015, the implied value of the total transaction consideration for Broadcom was $37 billion. As a result of the Broadcom Transaction, at closing, all our issued ordinary shares as of immediately prior to the effective time of the Broadcom Transaction will be exchanged on a one-to-one basis for new ordinary shares of Holdco. We intend to finance the estimated $17 billion of cash consideration with cash on hand from both companies and $16 billion in new, fully-committed debt financing from a consortium of banks. We also intend to refinance substantially all of our and Broadcom's existing debt with committed debt financing, presently aggregating approximately $6 billion.

At the closing of the Broadcom Transaction, each unvested Broadcom option and RSU will be assumed by Holdco, on the same terms and conditions as were applicable to such Broadcom option or RSU (including with respect to vesting), and converted to an equivalent equity award to receive Holdco ordinary shares appropriately adjusted to take into account the Broadcom Transaction consideration. All vested, in-the-money Broadcom stock options and RSUs, after giving effect to any acceleration or vesting that occurs as a result of the Broadcom Transaction, will be cashed out. Any vested out-of-the-money Broadcom option will be cancelled for no consideration.

At the closing of the Broadcom Transaction, each outstanding Avago option and RSU will be assumed by Holdco, on the same terms and conditions as were applicable to such Avago option or RSU (including with respect to vesting and, in case of Avago options, exercise price), and converted to an equivalent equity award to receive the same number of Holdco ordinary shares as were subject to, and on the same terms as, the underlying Avago option or RSU.

The Broadcom Transaction has been unanimously approved by the boards of directors of both companies, as well as a special committee of the independent directors of Broadcom. Consummation of the Broadcom Transaction is subject to the satisfaction or waiver of the conditions set forth in the Broadcom Agreement, including approval of the Broadcom Transaction by our shareholders and Broadcom shareholders, the expiration or termination of the waiting period under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, or the HSR Act, and the receipt of regulatory clearance under certain foreign anti-trust laws, as well as other customary closing conditions. On August 11, 2015, we announced that the waiting period under the HSR Act had expired. On November 10, 2015, both Avago shareholders and Broadcom shareholders approved the Broadcom Transaction.

Avago and Broadcom may each terminate the Broadcom Agreement under certain circumstances, and in connection with the termination of the Broadcom Agreement under specified circumstances, Avago or Broadcom may be required to pay the other party a termination fee of $1 billion.

Avago and Broadcom have each made customary covenants in the Broadcom Agreement, including, without limitation, covenants not to solicit alternative transactions or, subject to certain exceptions, not to enter into discussions concerning, or provide confidential information in connection with, an alternative transaction.

Investments

We determine the appropriate classification of our investments at the time of acquisition and re-evaluate such determination at each balance sheet date. We record non-marketable equity investments at cost where we do not have the ability to exercise significant influence over or control the business and periodically review them for impairment. As a result of the acquisition of LSI on May 6, 2014, we acquired a 51% equity interest in a joint venture, Silicon Manufacturing Partners Pte Ltd., or SMP, owned by us and GlobalFoundries, a manufacturing foundry for integrated circuits. SMP operates an integrated circuit manufacturing facility in Singapore. We account for our ownership position in SMP under the equity method of accounting. As of November 1, 2015 and November 2, 2014, the carrying amount of our equity interest was $26 million and $22 million, respectively. The equity interest is reported in other long-term assets on our consolidated balance sheet.