Broadcom — Dec 12, 2024 release

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP — UNAUDITED (IN MILLIONS) Fiscal Quarter Ended Fiscal Year Ended November 3, 2024 August 4, 2024 October 29, 2023 November 3, 2024 October 29, 2023 Gross margin on GAAP basis $ 9,002  $ 8,356  $ 6,407  $ 32,509  $ 24,690  Amortization of acquisition-related intangible assets 1,602  1,525  438  6,023  1,853  Stock-based compensation expense 159  174  62  664  210  Restructuring charges 51  58  1  254  4  Acquisition-related costs —  —  —  9  —  Gross margin on non-GAAP basis $ 10,814  $ 10,113  $ 6,908  $ 39,459  $ 26,757  Research and development on GAAP basis $ 2,234  $ 2,353  $ 1,388  $ 9,310  $ 5,253  Stock-based compensation expense 839  877  448  3,460  1,513  Acquisition-related costs —  2  —  3  —  Research and development on non-GAAP basis $ 1,395  $ 1,474  $ 940  $ 5,847  $ 3,740  Selling, general and administrative expense on GAAP basis $ 1,010  $ 1,100  $ 418  $ 4,959  $ 1,592  Stock-based compensation expense 316  330  128  1,546  448  Acquisition-related costs 86  79  69  537  252  Selling, general and administrative expense on non-GAAP basis $ 608  $ 691  $ 221  $ 2,876  $ 892  Total operating expenses on GAAP basis $ 4,375  $ 4,568  $ 2,167  $ 19,046  $ 8,483  Amortization of acquisition-related intangible assets 813  812  348  3,244  1,394  Stock-based compensation expense 1,155  1,207  576  5,006  1,961  Restructuring and other charges 318  303  13  1,533  244  Acquisition-related costs 86  81  69  540  252  Total operating expenses on non-GAAP basis $ 2,003  $ 2,165  $ 1,161  $ 8,723  $ 4,632  Operating income on GAAP basis $ 4,627  $ 3,788  $ 4,240  $ 13,463  $ 16,207  Amortization of acquisition-related intangible assets 2,415  2,337  786  9,267  3,247  Stock-based compensation expense 1,314  1,381  638  5,670  2,171  Restructuring and other charges 369  361  14  1,787  248  Acquisition-related costs 86  81  69  549  252  Operating income on non-GAAP basis $ 8,811  $ 7,948  $ 5,747  $ 30,736  $ 22,125  Interest expense on GAAP basis $ (916) $ (1,064) $ (405) $ (3,953) $ (1,622) Loss on debt extinguishment 52  83  —  157  —  Interest expense on non-GAAP basis $ (864) $ (981) $ (405) $ (3,796) $ (1,622) Other income, net on GAAP basis $ 52  $ 82  $ 132  $ 406  $ 512  (Gains) losses on investments 30  6  24  12  (11) Other —  —  (1) —  (1) Other income, net on non-GAAP basis $ 82  $ 88  $ 155  $ 418  $ 500  Fiscal Quarter Ended Fiscal Year Ended November 3, 2024 August 4, 2024 October 29, 2023 November 3, 2024 October 29, 2023 Provision for (benefit from) income taxes on GAAP basis $ (442) $ 4,238  $ 443  $ 3,748  $ 1,015  Non-GAAP tax reconciling adjustments (1) 1,506  (3,303) 244  (123) 1,610  Provision for income taxes on non-GAAP basis $ 1,064  $ 935  $ 687  $ 3,625  $ 2,625  Net income (loss) on GAAP basis $ 4,324  $ (1,875) $ 3,524  $ 5,895  $ 14,082  Amortization of acquisition-related intangible assets 2,415  2,337  786  9,267  3,247  Stock-based compensation expense 1,314  1,381  638  5,670  2,171  Restructuring and other charges 369  361  14  1,787  248  Acquisition-related costs 86  81  69  549  252  Loss on debt extinguishment 52  83  —  157  —  (Gains) losses on investments 30  6  24  12  (11) Other —  —  (1) —  (1) Non-GAAP tax reconciling adjustments (1) (1,506) 3,303  (244) 123  (1,610) (Income) loss from discontinued operations, net of income taxes (119) 443  —  273  —  Net income on non-GAAP basis $ 6,965  $ 6,120  $ 4,810  $ 23,733  $ 18,378  Net income (loss) on GAAP basis $ 4,324  $ (1,875) $ 3,524  $ 5,895  $ 14,082  Non-GAAP Adjustments: Amortization of acquisition-related intangible assets 2,415  2,337  786  9,267  3,247  Stock-based compensation expense 1,314  1,381  638  5,670  2,171  Restructuring and other charges 369  361  14  1,787  248  Acquisition-related costs 86  81  69  549  252  Loss on debt extinguishment 52  83  —  157  —  (Gains) losses on investments 30  6  24  12  (11) Other —  —  (1) —  (1) Non-GAAP tax reconciling adjustments (1) (1,506) 3,303  (244) 123  (1,610) (Income) loss from discontinued operations, net of income taxes (119) 443  —  273  —  Other Adjustments: Interest expense 864  981  405  3,796  1,622  Provision for income taxes on non-GAAP basis 1,064  935  687  3,625  2,625  Depreciation 156  149  124  593  502  Amortization of purchased intangibles and right-of-use assets 40  38  22  150  86  Adjusted EBITDA $ 9,089  $ 8,223  $ 6,048  $ 31,897  $ 23,213  Weighted-average shares used in per share calculations - diluted on GAAP basis (2) 4,828  4,663  4,268  4,778  4,272  Non-GAAP adjustment (3) 77  254  82  99  81  Weighted-average shares used in per share calculations - diluted on non-GAAP basis 4,905  4,917  4,350  4,877  4,353  Net cash provided by operating activities $ 5,604  $ 4,963  $ 4,828  $ 19,962  $ 18,085  Purchases of property, plant and equipment (122) (172) (105) (548) (452) Free cash flow $ 5,482  $ 4,791  $ 4,723  $ 19,414  $ 17,633   Fiscal Quarter Ending February 2, Expected average diluted share count: 2025 Weighted-average shares used in per share calculation - diluted on GAAP basis (2) 4,828  Non-GAAP adjustment (3) 68  Weighted-average shares used in per share calculation - diluted on non-GAAP basis 4,896  (1) Non-GAAP tax reconciling adjustments included a one-time discrete non-cash tax provision of $4.5 billion from the impact of an intra-group transfer of certain IP rights to the United States as a result of supply chain realignment for the fiscal quarter ended August 4, 2024 and the fiscal year ended November 3, 2024. (2) Reflects a ten-for-one forward stock split on July 12, 2024. (3) 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. For the fiscal quarter ended August 4, 2024, non-GAAP adjustment included the dilutive effect of the equity awards that were antidilutive on a GAAP basis. BROADCOM INC. CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED (IN MILLIONS) November 3, 2024 October 29, 2023 ASSETS Current assets: Cash and cash equivalents $ 9,348  $ 14,189  Trade accounts receivable, net 4,416  3,154  Inventory 1,760  1,898  Other current assets 4,071  1,606  Total current assets 19,595