Pension Benefits | Post-Retirement Benefits | |||||||||||||||
November 4, 2018 | October 29, 2017 | November 4, 2018 | October 29, 2017 | |||||||||||||
(In millions) | ||||||||||||||||
Projected benefit obligations | $ | 813 | $ | 807 | $ | — | $ | — | ||||||||
Accumulated benefit obligations | $ | 812 | $ | 805 | $ | 60 | $ | 65 | ||||||||
Fair value of plan assets | $ | 866 | $ | 823 | $ | 81 | $ | 83 |
Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||
(In millions) | ||||||||||||
As of November 4, 2018: | ||||||||||||
Purchased technology | $ | 15,806 | $ | (6,816 | ) | $ | 8,990 | |||||
Customer contracts and related relationships | 1,792 | (878 | ) | 914 | ||||||||
Trade names | 578 | (170 | ) | 408 | ||||||||
Other | 239 | (53 | ) | 186 | ||||||||
Intangible assets subject to amortization | 18,415 | (7,917 | ) | 10,498 | ||||||||
IPR&D | 264 | — | 264 | |||||||||
Total | $ | 18,679 | $ | (7,917 | ) | $ | 10,762 | |||||
As of October 29, 2017: | ||||||||||||
Purchased technology | $ | 12,724 | $ | (4,265 | ) | $ | 8,459 | |||||
Customer contracts and related relationships | 4,240 | (3,100 | ) | 1,140 | ||||||||
Trade names | 528 | (117 | ) | 411 | ||||||||
Other | 135 | (25 | ) | 110 | ||||||||
Intangible assets subject to amortization | 17,627 | (7,507 | ) | 10,120 | ||||||||
IPR&D | 712 | — | 712 | |||||||||
Total | $ | 18,339 | $ | (7,507 | ) | $ | 10,832 |
Fair Value | Weighted-Average Amortization Periods | |||||
(In millions) | (In years) | |||||
Developed technology | $ | 9,010 | 6 | |||
Customer contracts and related relationships | 2,703 | 2 | ||||
Order backlog | 750 | < 1 | ||||
Trade name | 350 | 17 | ||||
Other | 45 | 16 | ||||
Total identified finite-lived intangible assets | 12,858 | |||||
IPR&D | 1,950 | N/A | ||||
Total identified intangible assets, net of assets held-for-sale | 14,808 | |||||
Intangible assets included in assets held-for-sale | 320 | |||||
Identified intangible assets | $ | 15,128 |
Fair Value | Weighted-Average Amortization Periods | |||||
(In millions) | (In years) | |||||
Developed technology | $ | 2,925 | 10 | |||
Customer contracts and related relationships | 255 | 11 | ||||
Trade name and other | 61 | 6 | ||||
Total identified finite-lived intangible assets | 3,241 | |||||
IPR&D | 155 | N/A | ||||
Total identified intangible assets | $ | 3,396 |
Market-Based Awards | |||||||||
Fiscal Year | |||||||||
2018 | 2017 | 2016 | |||||||
Risk-free interest rate | 2.4 | % | 1.7 | % | 1.2 | % | |||
Dividend yield | 2.6 | % | 1.8 | % | 1.3 | % | |||
Volatility | 32.5 | % | 32.3 | % | 35.0 | % | |||
Expected term (in years) | 4.0 | 4.0 | 3.8 |
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
November 4, 2018 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | — | $ | 20,848 | $ | — | $ | 20,848 | ||||||||||||
Intercompany revenue | — | — | 1,924 | — | (1,924 | ) | — | |||||||||||||||||
Total revenue | — | — | 1,924 | 20,848 | (1,924 | ) | 20,848 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 132 | 6,889 | — | 7,021 | ||||||||||||||||||
Intercompany cost of products sold | — | — | — | 126 | (126 | ) | — | |||||||||||||||||
Purchase accounting effect on inventory | — | — | — | 70 | — | 70 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | — | 3,004 | — | 3,004 | ||||||||||||||||||
Restructuring charges | — | — | 1 | 19 | — | 20 | ||||||||||||||||||
Total cost of products sold | — | — | 133 | 10,108 | (126 | ) | 10,115 | |||||||||||||||||
Gross margin | — | — | 1,791 | 10,740 | (1,798 | ) | 10,733 | |||||||||||||||||
Research and development | — | — | 1,651 | 2,117 | — | 3,768 | ||||||||||||||||||
Intercompany operating expense | — | — | — | 1,798 | (1,798 | ) | — | |||||||||||||||||
Selling, general and administrative | 31 | 80 | 297 | 648 | — | 1,056 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | — | 541 | — | 541 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 53 | 166 | — | 219 | ||||||||||||||||||
Litigation settlements | — | — | 14 | — | — | 14 | ||||||||||||||||||
Total operating expenses | 31 | 80 | 2,015 | 5,270 | (1,798 | ) | 5,598 | |||||||||||||||||
Operating income (loss) | (31 | ) | (80 | ) | (224 | ) | 5,470 | — | 5,135 | |||||||||||||||
Interest expense | — | — | (626 | ) | (2 | ) | — | (628 | ) | |||||||||||||||
Intercompany interest expense | (67 | ) | — | (199 | ) | (1,449 | ) | 1,715 | — | |||||||||||||||
Impairment on investment | — | — | — | (106 | ) | — | (106 | ) | ||||||||||||||||
Other income, net | — | 4 | 88 | 52 | — | 144 | ||||||||||||||||||
Intercompany interest income | — | 1 | 1,516 | 198 | (1,715 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | 111 | 230 | (56 | ) | (285 | ) | — | — | ||||||||||||||||
Income from continuing operations before income taxes and earnings in subsidiaries | 13 | 155 | 499 | 3,878 | — | 4,545 | ||||||||||||||||||
Provision for (benefit from) income taxes | 44 | 2 | (8,043 | ) | (87 | ) | — | (8,084 | ) | |||||||||||||||
Income (loss) from continuing operations before earnings in subsidiaries | (31 | ) | 153 | 8,542 | 3,965 | — | 12,629 | |||||||||||||||||
Earnings in subsidiaries | 12,290 | 12,654 | 4,114 | 14,809 | (43,867 | ) | — | |||||||||||||||||
Income from continuing operations and earnings in subsidiaries | 12,259 | 12,807 | 12,656 | 18,774 | (43,867 | ) | 12,629 | |||||||||||||||||
Loss from discontinued operations, net of income taxes | — | — | (2 | ) | (17 | ) | — | (19 | ) | |||||||||||||||
Net income | 12,259 | 12,807 | 12,654 | 18,757 | (43,867 | ) | 12,610 | |||||||||||||||||
Net income attributable to noncontrolling interest | — | 351 | — | — | — | 351 | ||||||||||||||||||
Net income attributable to common stock | $ | 12,259 | $ | 12,456 | $ | 12,654 | $ | 18,757 | $ | (43,867 | ) | $ | 12,259 | |||||||||||
Net income | $ | 12,259 | $ | 12,807 | $ | 12,654 | $ | 18,757 | $ | (43,867 | ) | $ | 12,610 | |||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Comprehensive income | 12,259 | 12,807 | 12,654 | 18,749 | (43,867 | ) | 12,602 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | 351 | — | — | — | 351 | ||||||||||||||||||
Comprehensive income attributable to common stock | $ | 12,259 | $ | 12,456 | $ | 12,654 | $ | 18,749 | $ | (43,867 | ) | $ | 12,251 |
Condensed Consolidating Statements of Operations and Comprehensive Loss | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 29, 2017 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 73 | $ | 17,563 | $ | — | $ | 17,636 | ||||||||||||
Intercompany revenue | — | — | 2,046 | 8 | (2,054 | ) | — | |||||||||||||||||
Total revenue | — | — | 2,119 | 17,571 | (2,054 | ) | 17,636 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 154 | 6,439 | — | 6,593 | ||||||||||||||||||
Intercompany cost of products sold | — | — | (12 | ) | 174 | (162 | ) | — | ||||||||||||||||
Purchase accounting effect on inventory | — | — | — | 4 | — | 4 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 7 | 2,504 | — | 2,511 | ||||||||||||||||||
Restructuring charges | — | — | 5 | 14 | — | 19 | ||||||||||||||||||
Total cost of products sold | — | — | 154 | 9,135 | (162 | ) | 9,127 | |||||||||||||||||
Gross margin | — | — | 1,965 | 8,436 | (1,892 | ) | 8,509 | |||||||||||||||||
Research and development | — | — | 1,490 | 1,802 | — | 3,292 | ||||||||||||||||||
Intercompany operating expense | — | — | (66 | ) | 1,958 | (1,892 | ) | — | ||||||||||||||||
Selling, general and administrative | — | 23 | 339 | 425 | — | 787 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 7 | 1,757 | — | 1,764 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 54 | 107 | — | 161 | ||||||||||||||||||
Litigation settlements | — | — | — | 122 | — | 122 | ||||||||||||||||||
Total operating expenses | — | 23 | 1,824 | 6,171 | (1,892 | ) | 6,126 | |||||||||||||||||
Operating income (loss) | — | (23 | ) | 141 | 2,265 | — | 2,383 | |||||||||||||||||
Interest expense | — | — | (411 | ) | (43 | ) | — | (454 | ) | |||||||||||||||
Intercompany interest expense | — | (12 | ) | (274 | ) | (1,420 | ) | 1,706 | — | |||||||||||||||
Loss on extinguishment of debt | — | — | (59 | ) | (107 | ) | — | (166 | ) | |||||||||||||||
Other income, net | — | 2 | 30 | 30 | — | 62 | ||||||||||||||||||
Intercompany interest income | — | 1 | 1,425 | 280 | (1,706 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | — | 1,390 | (589 | ) | (801 | ) | — | — | ||||||||||||||||
Income from continuing operations before income taxes and earnings in subsidiaries | — | 1,358 | 263 | 204 | — | 1,825 | ||||||||||||||||||
Provision for (benefit from) income taxes | — | — | 67 | (32 | ) | — | 35 | |||||||||||||||||
Income from continuing operations before earnings in subsidiaries | — | 1,358 | 196 | 236 | — | 1,790 | ||||||||||||||||||
Earnings in subsidiaries | 1,692 | 426 | 243 | 4,453 | (6,814 | ) | — | |||||||||||||||||
Income from continuing operations and earnings in subsidiaries | 1,692 | 1,784 | 439 | 4,689 | (6,814 | ) | 1,790 | |||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | (13 | ) | 7 | — | (6 | ) | ||||||||||||||||
Net income | $ | 1,692 | $ | 1,784 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,784 | |||||||||||
Net income attributable to noncontrolling interest | — | 92 | — | — | — | 92 | ||||||||||||||||||
Net income attributable to common stock | $ | 1,692 | $ | 1,692 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,692 | |||||||||||
Net income | $ | 1,692 | $ | 1,784 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,784 | |||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Change in actuarial gain and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | 43 | — | 43 | ||||||||||||||||||
Other comprehensive income | — | — | — | 43 | — | 43 | ||||||||||||||||||
Comprehensive income | 1,692 | 1,784 | 426 | 4,739 | (6,814 | ) | 1,827 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | 92 | — | — | — | 92 | ||||||||||||||||||
Comprehensive income attributable to common stock | $ | 1,692 | $ | 1,692 | $ | 426 | $ | 4,739 | $ | (6,814 | ) | $ | 1,735 |
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 30, 2016 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 402 | $ | 12,838 | $ | — | $ | 13,240 | ||||||||||||
Intercompany revenue | — | — | 353 | 55 | (408 | ) | — | |||||||||||||||||
Total revenue | — | — | 755 | 12,893 | (408 | ) | 13,240 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 237 | 5,058 | — | 5,295 | ||||||||||||||||||
Intercompany cost of products sold | — | — | (149 | ) | 557 | (408 | ) | — | ||||||||||||||||
Purchase accounting effect on inventory | — | — | 15 | 1,170 | — | 1,185 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 14 | 749 | — | 763 | ||||||||||||||||||
Restructuring charges | — | — | 36 | 21 | — | 57 | ||||||||||||||||||
Total cost of products sold | — | — | 153 | 7,555 | (408 | ) | 7,300 | |||||||||||||||||
Gross margin | — | — | 602 | 5,338 | — | 5,940 | ||||||||||||||||||
Research and development | — | — | 1,237 | 1,437 | — | 2,674 | ||||||||||||||||||
Intercompany operating expense | — | — | (1,337 | ) | 1,337 | — | — | |||||||||||||||||
Selling, general and administrative | — | 41 | 254 | 511 | — | 806 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 82 | 1,791 | — | 1,873 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 309 | 687 | — | 996 | ||||||||||||||||||
Total operating expenses | — | 41 | 545 | 5,763 | — | 6,349 | ||||||||||||||||||
Operating income (loss) | — | (41 | ) | 57 | (425 | ) | — | (409 | ) | |||||||||||||||
Interest expense | — | — | (312 | ) | (273 | ) | — | (585 | ) | |||||||||||||||
Intercompany interest expense | — | (3 | ) | (262 | ) | (3 | ) | 268 | — | |||||||||||||||
Loss on extinguishment of debt | — | — | (113 | ) | (10 | ) | — | (123 | ) | |||||||||||||||
Other income (expense), net | — | — | (27 | ) | 37 | — | 10 | |||||||||||||||||
Intercompany interest income | — | 1 | 2 | 265 | (268 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | — | 753 | (277 | ) | (476 | ) | — | — | ||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings in subsidiaries | — | 710 | (932 | ) | (885 | ) | — | (1,107 | ) | |||||||||||||||
Provision for income taxes | — | — | 447 | 195 | — | 642 | ||||||||||||||||||
Income (loss) from continuing operations before loss from subsidiaries | — | 710 | (1,379 | ) | (1,080 | ) | — | (1,749 | ) | |||||||||||||||
Loss from subsidiaries | (1,739 | ) | (2,571 | ) | (1,034 | ) | (2,221 | ) | 7,565 | — | ||||||||||||||
Loss from continuing operations and loss in subsidiaries | (1,739 | ) | (1,861 | ) | (2,413 | ) | (3,301 | ) | 7,565 | (1,749 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | (158 | ) | 46 | — | (112 | ) | ||||||||||||||||
Net loss | (1,739 | ) | (1,861 | ) | (2,571 | ) | (3,255 | ) | 7,565 | (1,861 | ) | |||||||||||||
Net loss attributable to noncontrolling interest | — | (122 | ) | — | — | — | (122 | ) | ||||||||||||||||
Net loss attributable to common stock | $ | (1,739 | ) | $ | (1,739 | ) | $ | (2,571 | ) | $ | (3,255 | ) | $ | 7,565 | $ | (1,739 | ) | |||||||
Net loss | $ | (1,739 | ) | $ | (1,861 | ) | $ | (2,571 | ) | $ | (3,255 | ) | $ | 7,565 | $ | (1,861 | ) | |||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | (61 | ) | — | (61 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (61 | ) | — | (61 | ) | ||||||||||||||||
Comprehensive loss | (1,739 | ) | (1,861 | ) | (2,571 | ) | (3,316 | ) | 7,565 | (1,922 | ) | |||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | (122 | ) | — | — | — | (122 | ) | ||||||||||||||||
Comprehensive loss attributable to common stock | $ | (1,739 | ) | $ | (1,739 | ) | $ | (2,571 | ) | $ | (3,316 | ) | $ | 7,565 | $ | (1,800 | ) |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
November 4, 2018 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 6 | $ | 2,461 | $ | 1,825 | $ | — | $ | 4,292 | ||||||||||||
Trade accounts receivable, net | — | — | — | 3,325 | — | 3,325 | ||||||||||||||||||
Inventory | — | — | — | 1,124 | — | 1,124 | ||||||||||||||||||
Intercompany receivable | 56 | 40 | 182 | 103 | (381 | ) | — | |||||||||||||||||
Intercompany loan receivable | — | 46 | 9,780 | 4,667 | (14,493 | ) | — | |||||||||||||||||
Other current assets | 52 | — | 37 | 277 | — | 366 | ||||||||||||||||||
Total current assets | 108 | 92 | 12,460 | 11,321 | (14,874 | ) | 9,107 | |||||||||||||||||
Long-term assets: | ||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 772 | 1,863 | — | 2,635 | ||||||||||||||||||
Goodwill | — | — | 1,360 | 25,553 | — | 26,913 | ||||||||||||||||||
Intangible assets, net | — | — | 84 | 10,678 | — | 10,762 | ||||||||||||||||||
Investment in subsidiaries | 35,268 | 35,271 | 46,745 | 35,268 | (152,552 | ) | — | |||||||||||||||||
Intercompany loan receivable, long-term | — | — | — | 991 | (991 | ) | — | |||||||||||||||||
Other long-term assets | — | — | 250 | 457 | — | 707 | ||||||||||||||||||
Total assets | $ | 35,376 | $ | 35,363 | $ | 61,671 | $ | 86,131 | $ | (168,417 | ) | $ | 50,124 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 19 | $ | — | $ | 44 | $ | 748 | $ | — | $ | 811 | ||||||||||||
Employee compensation and benefits | — | — | 272 | 443 | — | 715 | ||||||||||||||||||
Intercompany payable | 9 | 93 | 58 | 221 | (381 | ) | — | |||||||||||||||||
Intercompany loan payable | 8,691 | — | 4,713 | 1,089 | (14,493 | ) | — | |||||||||||||||||
Other current liabilities | — | 2 | 219 | 591 | — | 812 | ||||||||||||||||||
Total current liabilities | 8,719 | 95 | 5,306 | 3,092 | (14,874 | ) | 2,338 | |||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Long-term debt | — | — | 17,456 | 37 | — | 17,493 | ||||||||||||||||||
Deferred tax liabilities | — | — | (47 | ) | 216 | — | 169 | |||||||||||||||||
Intercompany loan payable, long-term | — | — | 991 | — | (991 | ) | — | |||||||||||||||||
Unrecognized tax benefits | — | — | 2,563 | 525 | — | 3,088 | ||||||||||||||||||
Other long-term liabilities | — | — | 131 | 248 | — | 379 | ||||||||||||||||||
Total liabilities | 8,719 | 95 | 26,400 | 4,118 | (15,865 | ) | 23,467 | |||||||||||||||||
Total Broadcom Inc. stockholders’ equity | 26,657 | 35,268 | 35,271 | 82,013 | (152,552 | ) | 26,657 | |||||||||||||||||
Total liabilities and equity | $ | 35,376 | $ | 35,363 | $ | 61,671 | $ | 86,131 | $ | (168,417 | ) | $ | 50,124 |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
October 29, 2017 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 194 | $ | 7,555 | $ | 3,455 | $ | — | $ | 11,204 | ||||||||||||
Trade accounts receivable, net | — | — | — | 2,448 | — | 2,448 | ||||||||||||||||||
Inventory | — | — | — | 1,447 | — | 1,447 | ||||||||||||||||||
Intercompany receivable | — | 32 | 279 | 309 | (620 | ) | — | |||||||||||||||||
Intercompany loan receivable | — | 28 | 1,891 | 8,849 | (10,768 | ) | — | |||||||||||||||||
Other current assets | — | — | 350 | 374 | — | 724 | ||||||||||||||||||
Total current assets | — | 254 | 10,075 | 16,882 | (11,388 | ) | 15,823 | |||||||||||||||||
Long-term assets: | ||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 207 | 2,392 | — | 2,599 | ||||||||||||||||||
Goodwill | — | — | 1,360 | 23,346 | — | 24,706 | ||||||||||||||||||
Intangible assets, net | — | — | — | 10,832 | — | 10,832 | ||||||||||||||||||
Investment in subsidiaries | 20,285 | 23,112 | 7,709 | 22,776 | (73,882 | ) | — | |||||||||||||||||
Intercompany loan receivable, long-term | — | — | 41,547 | — | (41,547 | ) | — | |||||||||||||||||
Other long-term assets | — | — | 213 | 245 | — | 458 | ||||||||||||||||||
Total assets | $ | 20,285 | $ | 23,366 | $ | 61,111 | $ | 76,473 | $ | (126,817 | ) | $ | 54,418 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 7 | $ | 72 | $ | 1,026 | $ | — | $ | 1,105 | ||||||||||||
Employee compensation and benefits | — | — | 274 | 352 | — | 626 | ||||||||||||||||||
Current portion of long-term debt | — | — | 117 | — | — | 117 | ||||||||||||||||||
Intercompany payable | — | 123 | 186 | 311 | (620 | ) | — | |||||||||||||||||
Intercompany loan payable | — | 50 | 8,799 | 1,919 | (10,768 | ) | — | |||||||||||||||||
Other current liabilities | — | — | 254 | 427 | — | 681 | ||||||||||||||||||
Total current liabilities | — | 180 | 9,702 | 4,035 | (11,388 | ) | 2,529 | |||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Long-term debt | — | — | 17,431 | — | — | 17,431 | ||||||||||||||||||
Deferred tax liabilities | — | — | 10,293 | (274 | ) | — | 10,019 | |||||||||||||||||
Intercompany loan payable, long-term | — | — | — | 41,547 | (41,547 | ) | — | |||||||||||||||||
Unrecognized tax benefits | — | — | 497 | 514 | — | 1,011 | ||||||||||||||||||
Other long-term liabilities | — | — | 76 | 166 | — | 242 | ||||||||||||||||||
Total liabilities | — | 180 | 37,999 | 45,988 | (52,935 | ) | 31,232 | |||||||||||||||||
Total Broadcom Inc. stockholders’ equity | 20,285 | 20,285 | 23,112 | 30,485 | (73,882 | ) | 20,285 | |||||||||||||||||
Noncontrolling interest | — | 2,901 | — | — | — | 2,901 | ||||||||||||||||||
Total liabilities and equity | $ | 20,285 | $ | 23,366 | $ | 61,111 | $ | 76,473 | $ | (126,817 | ) | $ | 54,418 |
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
November 4, 2018 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income | $ | 12,259 | $ | 12,807 | $ | 12,654 | $ | 18,757 | $ | (43,867 | ) | $ | 12,610 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | (12,323 | ) | (12,926 | ) | (12,906 | ) | (9,671 | ) | 44,096 | (3,730 | ) | |||||||||||||
Net cash provided by (used in) operating activities | (64 | ) | (119 | ) | (252 | ) | 9,086 | 229 | 8,880 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Intercompany contributions paid | — | (102 | ) | (9,099 | ) | (3,002 | ) | 12,203 | — | |||||||||||||||
Distributions received from subsidiaries | — | 1,521 | — | 1,521 | (3,042 | ) | — | |||||||||||||||||
Net change in intercompany loans | — | (19 | ) | 2,637 | (164 | ) | (2,454 | ) | — | |||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | — | (4,800 | ) | — | (4,800 | ) | ||||||||||||||||
Proceeds from sales of businesses | — | — | — | 773 | — | 773 | ||||||||||||||||||
Purchases of property, plant and equipment | — | — | (196 | ) | (497 | ) | 58 | (635 | ) | |||||||||||||||
Proceeds from disposals of property, plant and equipment | — | — | 55 | 242 | (58 | ) | 239 | |||||||||||||||||
Purchases of investments | — | — | (50 | ) | (199 | ) | — | (249 | ) | |||||||||||||||
Proceeds from sales and maturities of investments | — | — | 54 | — | — | 54 | ||||||||||||||||||
Other | — | — | (50 | ) | (6 | ) | — | (56 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | — | 1,400 | (6,649 | ) | (6,132 | ) | 6,707 | (4,674 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Intercompany contributions received | — | — | 3,231 | 9,201 | (12,432 | ) | — | |||||||||||||||||
Dividend and distribution payments | (1,477 | ) | (1,521 | ) | (1,521 | ) | (1,521 | ) | 3,042 | (2,998 | ) | |||||||||||||
Net intercompany borrowings | 8,690 | (50 | ) | 261 | (11,355 | ) | 2,454 | — | ||||||||||||||||
Repayment of debt | — | — | (117 | ) | (856 | ) | — | (973 | ) | |||||||||||||||
Repurchase of common stock | (7,258 | ) | — | — | — | — | (7,258 | ) | ||||||||||||||||
Issuance of common stock, net of shares withheld for employee taxes | 109 | 102 | (20 | ) | (35 | ) | — | 156 | ||||||||||||||||
Payment of capital lease obligations | — | — | — | (21 | ) | — | (21 | ) | ||||||||||||||||
Other | — | — | (27 | ) | 3 | — | (24 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities | 64 | (1,469 | ) | 1,807 | (4,584 | ) | (6,936 | ) | (11,118 | ) | ||||||||||||||
Net change in cash and cash equivalents | — | (188 | ) | (5,094 | ) | (1,630 | ) | — | (6,912 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 194 | 7,555 | 3,455 | — | 11,204 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 6 | $ | 2,461 | $ | 1,825 | $ | — | $ | 4,292 |
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 29, 2017 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income | $ | 1,692 | $ | 1,784 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,784 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | (1,692 | ) | (1,980 | ) | 2,282 | (822 | ) | 6,979 | 4,767 | |||||||||||||||
Net cash provided by (used in) operating activities | — | (196 | ) | 2,708 | 3,874 | 165 | 6,551 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Intercompany contributions paid | — | (40 | ) | — | (40 | ) | 80 | — | ||||||||||||||||
Distributions received from subsidiaries | — | 1,834 | — | 1,858 | (3,692 | ) | — | |||||||||||||||||
Net change in intercompany loans | — | 410 | (286 | ) | 5,664 | (5,788 | ) | — | ||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | — | (40 | ) | — | (40 | ) | ||||||||||||||||
Proceeds from sales of businesses | — | — | — | 10 | — | 10 | ||||||||||||||||||
Purchases of property, plant and equipment | — | — | (254 | ) | (841 | ) | 26 | (1,069 | ) | |||||||||||||||
Proceeds from disposals of property, plant and equipment | — | — | 25 | 442 | (26 | ) | 441 | |||||||||||||||||
Purchases of investments | — | — | (200 | ) | (7 | ) | — | (207 | ) | |||||||||||||||
Proceeds from sales and maturities of investments | — | — | 200 | — | — | 200 | ||||||||||||||||||
Other | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | — | 2,204 | (515 | ) | 7,037 | (9,400 | ) | (674 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Intercompany contributions received | — | — | 205 | 40 | (245 | ) | — | |||||||||||||||||
Dividend and distribution payments | — | (1,745 | ) | (1,834 | ) | (1,858 | ) | 3,692 | (1,745 | ) | ||||||||||||||
Net intercompany borrowings | — | (379 | ) | (5,797 | ) | 388 | 5,788 | — | ||||||||||||||||
Proceeds from issuance of long-term debt | — | — | 17,426 | — | — | 17,426 | ||||||||||||||||||
Repayment of debt | — | — | (5,704 | ) | (7,964 | ) | — | (13,668 | ) | |||||||||||||||
Payment of debt issuance costs | — | — | (24 | ) | — | — | (24 | ) | ||||||||||||||||
Issuance of common stock, net of shares withheld for employee taxes | — | 257 | — | — | — | 257 | ||||||||||||||||||
Payment of capital lease obligations | — | — | (2 | ) | (14 | ) | — | (16 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | — | (1,867 | ) | 4,270 | (9,408 | ) | 9,235 | 2,230 | ||||||||||||||||
Net change in cash and cash equivalents | — | 141 | 6,463 | 1,503 | — | 8,107 | ||||||||||||||||||
Cash and cash equivalents at the beginning of period | — | 53 | 1,092 | 1,952 | — | 3,097 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 194 | $ | 7,555 | $ | 3,455 | $ | — | $ | 11,204 |
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 30, 2016 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (1,739 | ) | $ | (1,861 | ) | $ | (2,571 | ) | $ | (3,255 | ) | $ | 7,565 | $ | (1,861 | ) | |||||||
Total adjustments to reconcile net loss to net cash provided by (used in) operating activities | 1,739 | 1,818 | 2,303 | 6,637 | (7,225 | ) | 5,272 | |||||||||||||||||
Net cash provided by (used in) operating activities | — | (43 | ) | (268 | ) | 3,382 | 340 | 3,411 | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Intercompany contributions paid | — | (35 | ) | (7,400 | ) | (4,970 | ) | 12,405 | — | |||||||||||||||
Distributions received from subsidiaries | — | 250 | 356 | 250 | (856 | ) | — | |||||||||||||||||
Net change in intercompany loans | — | — | (102 | ) | (10,587 | ) | 10,689 | — | ||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (10,965 | ) | 910 | — | (10,055 | ) | ||||||||||||||||
Proceeds from sales of businesses | — | — | 58 | 840 | — | 898 | ||||||||||||||||||
Purchases of property, plant and equipment | — | — | (80 | ) | (643 | ) | — | (723 | ) | |||||||||||||||
Proceeds from disposals of property, plant and equipment | — | — | — | 5 | — | 5 | ||||||||||||||||||
Purchases of investments | — | — | — | (58 | ) | — | (58 | ) | ||||||||||||||||
Proceeds from sales and maturities of investments | — | — | 13 | 91 | — | 104 | ||||||||||||||||||
Other | — | — | (2 | ) | (9 | ) | — | (11 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | — | 215 | (18,122 | ) | (14,171 | ) | 22,238 | (9,840 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Intercompany contributions received | — | — | 5,310 | 7,435 | (12,745 | ) | — | |||||||||||||||||
Dividend and distribution payments | — | (628 | ) | (250 | ) | (728 | ) | 856 | (750 | ) | ||||||||||||||
Net intercompany borrowings | — | 286 | 10,301 | 102 | (10,689 | ) | — | |||||||||||||||||
Proceeds from issuance of long-term debt | — | — | 9,551 | 9,959 | — | 19,510 | ||||||||||||||||||
Repayment of debt | — | — | (5,358 | ) | (5,959 | ) | — | (11,317 | ) | |||||||||||||||
Payment of debt issuance costs | — | — | (77 | ) | (46 | ) | — | (123 | ) | |||||||||||||||
Excess tax benefits from stock-based compensation | — | — | 5 | 84 | — | 89 | ||||||||||||||||||
Issuance of common stock, net of shares withheld for employee taxes | — | 223 | — | 72 | — | 295 | ||||||||||||||||||
Net cash provided by (used in) financing activities | — | (119 | ) | 19,482 | 10,919 | (22,578 | ) | 7,704 | ||||||||||||||||
Net change in cash and cash equivalents | — | 53 | 1,092 | 130 | — | 1,275 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | — | 1,822 | — | 1,822 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 53 | $ | 1,092 | $ | 1,952 | $ | — | $ | 3,097 |
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
November 4, 2018 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | — | $ | 20,848 | $ | — | $ | 20,848 | ||||||||||||
Intercompany revenue | — | — | 1,924 | — | (1,924 | ) | — | |||||||||||||||||
Total revenue | — | — | 1,924 | 20,848 | (1,924 | ) | 20,848 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 132 | 6,889 | — | 7,021 | ||||||||||||||||||
Intercompany cost of products sold | — | — | — | 126 | (126 | ) | — | |||||||||||||||||
Purchase accounting effect on inventory | — | — | — | 70 | — | 70 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | — | 3,004 | — | 3,004 | ||||||||||||||||||
Restructuring charges | — | — | 1 | 19 | — | 20 | ||||||||||||||||||
Total cost of products sold | — | — | 133 | 10,108 | (126 | ) | 10,115 | |||||||||||||||||
Gross margin | — | — | 1,791 | 10,740 | (1,798 | ) | 10,733 | |||||||||||||||||
Research and development | — | — | 1,651 | 2,117 | — | 3,768 | ||||||||||||||||||
Intercompany operating expense | — | — | — | 1,798 | (1,798 | ) | — | |||||||||||||||||
Selling, general and administrative | 31 | 80 | 297 | 648 | — | 1,056 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | — | 541 | — | 541 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 53 | 166 | — | 219 | ||||||||||||||||||
Litigation settlements | — | — | 14 | — | — | 14 | ||||||||||||||||||
Total operating expenses | 31 | 80 | 2,015 | 5,270 | (1,798 | ) | 5,598 | |||||||||||||||||
Operating income (loss) | (31 | ) | (80 | ) | (224 | ) | 5,470 | — | 5,135 | |||||||||||||||
Interest expense | — | — | (626 | ) | (2 | ) | — | (628 | ) | |||||||||||||||
Intercompany interest expense | (67 | ) | — | (199 | ) | (1,449 | ) | 1,715 | — | |||||||||||||||
Impairment on investment | — | — | — | (106 | ) | — | (106 | ) | ||||||||||||||||
Other income, net | — | 4 | 88 | 52 | — | 144 | ||||||||||||||||||
Intercompany interest income | — | 1 | 1,516 | 198 | (1,715 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | 111 | 230 | (56 | ) | (285 | ) | — | — | ||||||||||||||||
Income from continuing operations before income taxes and earnings in subsidiaries | 13 | 155 | 499 | 3,878 | — | 4,545 | ||||||||||||||||||
Provision for (benefit from) income taxes | 44 | 2 | (8,043 | ) | (87 | ) | — | (8,084 | ) | |||||||||||||||
Income (loss) from continuing operations before earnings in subsidiaries | (31 | ) | 153 | 8,542 | 3,965 | — | 12,629 | |||||||||||||||||
Earnings in subsidiaries | 12,290 | 12,654 | 4,114 | 14,809 | (43,867 | ) | — | |||||||||||||||||
Income from continuing operations and earnings in subsidiaries | 12,259 | 12,807 | 12,656 | 18,774 | (43,867 | ) | 12,629 | |||||||||||||||||
Loss from discontinued operations, net of income taxes | — | — | (2 | ) | (17 | ) | — | (19 | ) | |||||||||||||||
Net income | 12,259 | 12,807 | 12,654 | 18,757 | (43,867 | ) | 12,610 | |||||||||||||||||
Net income attributable to noncontrolling interest | — | 351 | — | — | — | 351 | ||||||||||||||||||
Net income attributable to common stock | $ | 12,259 | $ | 12,456 | $ | 12,654 | $ | 18,757 | $ | (43,867 | ) | $ | 12,259 | |||||||||||
Net income | $ | 12,259 | $ | 12,807 | $ | 12,654 | $ | 18,757 | $ | (43,867 | ) | $ | 12,610 | |||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Comprehensive income | 12,259 | 12,807 | 12,654 | 18,749 | (43,867 | ) | 12,602 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | 351 | — | — | — | 351 | ||||||||||||||||||
Comprehensive income attributable to common stock | $ | 12,259 | $ | 12,456 | $ | 12,654 | $ | 18,749 | $ | (43,867 | ) | $ | 12,251 |
Condensed Consolidating Statements of Operations and Comprehensive Loss | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 29, 2017 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 73 | $ | 17,563 | $ | — | $ | 17,636 | ||||||||||||
Intercompany revenue | — | — | 2,046 | 8 | (2,054 | ) | — | |||||||||||||||||
Total revenue | — | — | 2,119 | 17,571 | (2,054 | ) | 17,636 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 154 | 6,439 | — | 6,593 | ||||||||||||||||||
Intercompany cost of products sold | — | — | (12 | ) | 174 | (162 | ) | — | ||||||||||||||||
Purchase accounting effect on inventory | — | — | — | 4 | — | 4 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 7 | 2,504 | — | 2,511 | ||||||||||||||||||
Restructuring charges | — | — | 5 | 14 | — | 19 | ||||||||||||||||||
Total cost of products sold | — | — | 154 | 9,135 | (162 | ) | 9,127 | |||||||||||||||||
Gross margin | — | — | 1,965 | 8,436 | (1,892 | ) | 8,509 | |||||||||||||||||
Research and development | — | — | 1,490 | 1,802 | — | 3,292 | ||||||||||||||||||
Intercompany operating expense | — | — | (66 | ) | 1,958 | (1,892 | ) | — | ||||||||||||||||
Selling, general and administrative | — | 23 | 339 | 425 | — | 787 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 7 | 1,757 | — | 1,764 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 54 | 107 | — | 161 | ||||||||||||||||||
Litigation settlements | — | — | — | 122 | — | 122 | ||||||||||||||||||
Total operating expenses | — | 23 | 1,824 | 6,171 | (1,892 | ) | 6,126 | |||||||||||||||||
Operating income (loss) | — | (23 | ) | 141 | 2,265 | — | 2,383 | |||||||||||||||||
Interest expense | — | — | (411 | ) | (43 | ) | — | (454 | ) | |||||||||||||||
Intercompany interest expense | — | (12 | ) | (274 | ) | (1,420 | ) | 1,706 | — | |||||||||||||||
Loss on extinguishment of debt | — | — | (59 | ) | (107 | ) | — | (166 | ) | |||||||||||||||
Other income, net | — | 2 | 30 | 30 | — | 62 | ||||||||||||||||||
Intercompany interest income | — | 1 | 1,425 | 280 | (1,706 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | — | 1,390 | (589 | ) | (801 | ) | — | — | ||||||||||||||||
Income from continuing operations before income taxes and earnings in subsidiaries | — | 1,358 | 263 | 204 | — | 1,825 | ||||||||||||||||||
Provision for (benefit from) income taxes | — | — | 67 | (32 | ) | — | 35 | |||||||||||||||||
Income from continuing operations before earnings in subsidiaries | — | 1,358 | 196 | 236 | — | 1,790 | ||||||||||||||||||
Earnings in subsidiaries | 1,692 | 426 | 243 | 4,453 | (6,814 | ) | — | |||||||||||||||||
Income from continuing operations and earnings in subsidiaries | 1,692 | 1,784 | 439 | 4,689 | (6,814 | ) | 1,790 | |||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | (13 | ) | 7 | — | (6 | ) | ||||||||||||||||
Net income | $ | 1,692 | $ | 1,784 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,784 | |||||||||||
Net income attributable to noncontrolling interest | — | 92 | — | — | — | 92 | ||||||||||||||||||
Net income attributable to common stock | $ | 1,692 | $ | 1,692 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,692 | |||||||||||
Net income | $ | 1,692 | $ | 1,784 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,784 | |||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Change in actuarial gain and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | 43 | — | 43 | ||||||||||||||||||
Other comprehensive income | — | — | — | 43 | — | 43 | ||||||||||||||||||
Comprehensive income | 1,692 | 1,784 | 426 | 4,739 | (6,814 | ) | 1,827 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | 92 | — | — | — | 92 | ||||||||||||||||||
Comprehensive income attributable to common stock | $ | 1,692 | $ | 1,692 | $ | 426 | $ | 4,739 | $ | (6,814 | ) | $ | 1,735 |
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 30, 2016 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 402 | $ | 12,838 | $ | — | $ | 13,240 | ||||||||||||
Intercompany revenue | — | — | 353 | 55 | (408 | ) | — | |||||||||||||||||
Total revenue | — | — | 755 | 12,893 | (408 | ) | 13,240 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 237 | 5,058 | — | 5,295 | ||||||||||||||||||
Intercompany cost of products sold | — | — | (149 | ) | 557 | (408 | ) | — | ||||||||||||||||
Purchase accounting effect on inventory | — | — | 15 | 1,170 | — | 1,185 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 14 | 749 | — | 763 | ||||||||||||||||||
Restructuring charges | — | — | 36 | 21 | — | 57 | ||||||||||||||||||
Total cost of products sold | — | — | 153 | 7,555 | (408 | ) | 7,300 | |||||||||||||||||
Gross margin | — | — | 602 | 5,338 | — | 5,940 | ||||||||||||||||||
Research and development | — | — | 1,237 | 1,437 | — | 2,674 | ||||||||||||||||||
Intercompany operating expense | — | — | (1,337 | ) | 1,337 | — | — | |||||||||||||||||
Selling, general and administrative | — | 41 | 254 | 511 | — | 806 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 82 | 1,791 | — | 1,873 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 309 | 687 | — | 996 | ||||||||||||||||||
Total operating expenses | — | 41 | 545 | 5,763 | — | 6,349 | ||||||||||||||||||
Operating income (loss) | — | (41 | ) | 57 | (425 | ) | — | (409 | ) | |||||||||||||||
Interest expense | — | — | (312 | ) | (273 | ) | — | (585 | ) | |||||||||||||||
Intercompany interest expense | — | (3 | ) | (262 | ) | (3 | ) | 268 | — | |||||||||||||||
Loss on extinguishment of debt | — | — | (113 | ) | (10 | ) | — | (123 | ) | |||||||||||||||
Other income (expense), net | — | — | (27 | ) | 37 | — | 10 | |||||||||||||||||
Intercompany interest income | — | 1 | 2 | 265 | (268 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | — | 753 | (277 | ) | (476 | ) | — | — | ||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings in subsidiaries | — | 710 | (932 | ) | (885 | ) | — | (1,107 | ) | |||||||||||||||
Provision for income taxes | — | — | 447 | 195 | — | 642 | ||||||||||||||||||
Income (loss) from continuing operations before loss from subsidiaries | — | 710 | (1,379 | ) | (1,080 | ) | — | (1,749 | ) | |||||||||||||||
Loss from subsidiaries | (1,739 | ) | (2,571 | ) | (1,034 | ) | (2,221 | ) | 7,565 | — | ||||||||||||||
Loss from continuing operations and loss in subsidiaries | (1,739 | ) | (1,861 | ) | (2,413 | ) | (3,301 | ) | 7,565 | (1,749 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | (158 | ) | 46 | — | (112 | ) | ||||||||||||||||
Net loss | (1,739 | ) | (1,861 | ) | (2,571 | ) | (3,255 | ) | 7,565 | (1,861 | ) | |||||||||||||
Net loss attributable to noncontrolling interest | — | (122 | ) | — | — | — | (122 | ) | ||||||||||||||||
Net loss attributable to common stock | $ | (1,739 | ) | $ | (1,739 | ) | $ | (2,571 | ) | $ | (3,255 | ) | $ | 7,565 | $ | (1,739 | ) | |||||||
Net loss | $ | (1,739 | ) | $ | (1,861 | ) | $ | (2,571 | ) | $ | (3,255 | ) | $ | 7,565 | $ | (1,861 | ) | |||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | (61 | ) | — | (61 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (61 | ) | — | (61 | ) | ||||||||||||||||
Comprehensive loss | (1,739 | ) | (1,861 | ) | (2,571 | ) | (3,316 | ) | 7,565 | (1,922 | ) | |||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | (122 | ) | — | — | — | (122 | ) | ||||||||||||||||
Comprehensive loss attributable to common stock | $ | (1,739 | ) | $ | (1,739 | ) | $ | (2,571 | ) | $ | (3,316 | ) | $ | 7,565 | $ | (1,800 | ) |
Balance at Beginning of Period | Additions to Allowances | Charges Utilized/ Write-offs | Balance at End of Period | |||||||||||||
(In millions) | ||||||||||||||||
Accounts receivable allowances: | ||||||||||||||||
Distributor credit allowances (1) | ||||||||||||||||
Fiscal year ended November 4, 2018 | $ | 177 | $ | 882 | $ | (908 | ) | $ | 151 | |||||||
Fiscal year ended October 29, 2017 | $ | 252 | $ | 1,176 | $ | (1,251 | ) | $ | 177 | |||||||
Fiscal year ended October 30, 2016 | $ | 66 | $ | 1,216 | $ | (1,030 | ) | $ | 252 | |||||||
Other accounts receivable allowances (2) | ||||||||||||||||
Fiscal year ended November 4, 2018 | $ | 31 | $ | 116 | $ | (135 | ) | $ | 12 | |||||||
Fiscal year ended October 29, 2017 | $ | 40 | $ | 49 | $ | (58 | ) | $ | 31 | |||||||
Fiscal year ended October 30, 2016 | $ | 9 | $ | 142 | $ | (111 | ) | $ | 40 | |||||||
Income tax valuation allowances (3) | ||||||||||||||||
Fiscal year ended November 4, 2018 | $ | 1,447 | $ | 314 | $ | (414 | ) | $ | 1,347 | |||||||
Fiscal year ended October 29, 2017 | $ | 1,003 | $ | 460 | $ | (16 | ) | $ | 1,447 | |||||||
Fiscal year ended October 30, 2016 | $ | 147 | $ | 882 | $ | (26 | ) | $ | 1,003 |
(1) | Distributor credit allowances relate to price adjustments and other allowances. |
(2) | Other accounts receivable allowances primarily include sales returns and allowance for doubtful accounts. |
(3) | The decrease in the fiscal year 2018 valuation allowance resulted from restructuring activities offset by increases due to the Brocade Merger and in foreign deferred tax assets arising from foreign credits and losses not expected to be realized. The increase in the fiscal year 2017 valuation allowances resulted from foreign deferred tax assets arising from foreign losses not expected to be realized. |
Fiscal Year | ||||
2016 | ||||
(In millions) | ||||
Pro forma net revenue | $ | 15,281 | ||
Pro forma net loss attributable to common stock | $ | (1,291 | ) |
Fiscal Year | ||||||||
2018 | 2017 | |||||||
Pro forma net revenue | $ | 20,978 | $ | 19,441 | ||||
Pro forma net income attributable to common stock | $ | 12,408 | $ | 986 |
(In millions) | ||||
Cash paid for outstanding Brocade common stock | $ | 5,298 | ||
Cash paid by Broadcom to retire Brocade’s term loan | 701 | |||
Cash paid for Brocade equity awards | 31 | |||
Fair value of partially vested assumed equity awards | 8 | |||
Total purchase consideration | 6,038 | |||
Less: cash acquired | 1,250 | |||
Total purchase consideration, net of cash acquired | $ | 4,788 |
Estimated Fair Value | ||||
(In millions) | ||||
Current assets | $ | 1,297 | ||
Goodwill | 2,187 | |||
Intangible assets | 3,396 | |||
Other long-term assets | 82 | |||
Total assets acquired | 6,962 | |||
Current portion of long-term debt | (856 | ) | ||
Other current liabilities | (374 | ) | ||
Long-term debt | (38 | ) | ||
Other long-term liabilities | (906 | ) | ||
Total liabilities assumed | (2,174 | ) | ||
Fair value of net assets acquired | $ | 4,788 |
Fair Value | Weighted-Average Amortization Periods | |||||
(In millions) | (In years) | |||||
Developed technology | $ | 2,925 | 10 | |||
Customer contracts and related relationships | 255 | 11 | ||||
Trade name and other | 61 | 6 | ||||
Total identified finite-lived intangible assets | 3,241 | |||||
IPR&D | 155 | N/A | ||||
Total identified intangible assets | $ | 3,396 |
Description | IPR&D | Percentage of Completion | Estimated Cost to Complete | Expected Release Date (By Fiscal Year) | |||||||||
(Dollars in millions) | |||||||||||||
Directors | $ | 64 | 72 | % | $ | 45 | 2019 | ||||||
Switches | $ | 50 | 81 | % | $ | 21 | 2018 | ||||||
Embedded | $ | 31 | 74 | % | $ | 22 | 2019 | ||||||
Networking software | $ | 10 | 73 | % | $ | 27 | 2018 |
Fiscal Year | ||||||||
2018 | 2017 | |||||||
Pro forma net revenue | $ | 20,978 | $ | 19,441 | ||||
Pro forma net income attributable to common stock | $ | 12,408 | $ | 986 |
(In millions) | ||||
Cash for outstanding BRCM common stock | $ | 16,798 | ||
Fair value of Broadcom common stock issued for outstanding BRCM common stock | 15,438 | |||
Fair value of Partnership LP units issued for outstanding BRCM common stock | 3,140 | |||
Fair value of partially vested assumed RSU awards | 182 | |||
Cash for vested BRCM equity awards | 137 | |||
Effective settlement of pre-existing relationships | 11 | |||
Total purchase consideration | 35,706 | |||
Less: cash acquired | 6,948 | |||
Total purchase consideration, net of cash acquired | $ | 28,758 |
Fair Value | ||||
(In millions) | ||||
Trade accounts receivable | $ | 669 | ||
Inventory | 1,853 | |||
Assets held-for-sale | 833 | |||
Other current assets | 194 | |||
Property, plant and equipment | 889 | |||
Goodwill | 22,992 | |||
Intangible assets | 14,808 | |||
Other long-term assets | 121 | |||
Total assets acquired | 42,359 | |||
Accounts payable | (559 | ) | ||
Employee compensation and benefits | (104 | ) | ||
Current portion of long-term debt | (1,475 | ) | ||
Other current liabilities | (780 | ) | ||
Long-term debt | (139 | ) | ||
Other long-term liabilities | (10,544 | ) | ||
Total liabilities assumed | (13,601 | ) | ||
Fair value of net assets acquired | $ | 28,758 |
Fair Value | Weighted-Average Amortization Periods | |||||
(In millions) | (In years) | |||||
Developed technology | $ | 9,010 | 6 | |||
Customer contracts and related relationships | 2,703 | 2 | ||||
Order backlog | 750 | < 1 | ||||
Trade name | 350 | 17 | ||||
Other | 45 | 16 | ||||
Total identified finite-lived intangible assets | 12,858 | |||||
IPR&D | 1,950 | N/A | ||||
Total identified intangible assets, net of assets held-for-sale | 14,808 | |||||
Intangible assets included in assets held-for-sale | 320 | |||||
Identified intangible assets | $ | 15,128 |
Description | IPR&D | Percentage of Completion | Estimated Cost to Complete | Expected Release Date (By Fiscal Year) | |||||||||
(Dollars in millions) | |||||||||||||
Set-top box solutions | $ | 90 | 56 | % | $ | 90 | 2016 - 2017 | ||||||
Broadband carrier access solutions | $ | 390 | 34 | % | $ | 376 | 2016 - 2018 | ||||||
Carrier switch solutions | $ | 270 | 51 | % | $ | 255 | 2016 - 2019 | ||||||
Compute and connectivity solutions | $ | 170 | 61 | % | $ | 136 | 2016 - 2018 | ||||||
Physical layer product solutions | $ | 190 | 51 | % | $ | 71 | 2016 - 2019 | ||||||
Wireless connectivity combo solutions | $ | 770 | 57 | % | $ | 364 | 2016 - 2018 | ||||||
Touch controllers | $ | 70 | 39 | % | $ | 21 | 2016 - 2017 |
Fiscal Year | ||||
2016 | ||||
(In millions) | ||||
Pro forma net revenue | $ | 15,281 | ||
Pro forma net loss attributable to common stock | $ | (1,291 | ) |
Fiscal Year | ||||||||||||||||||||||||||||
Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Debt principal and interest | $ | 20,941 | $ | 566 | $ | 3,321 | $ | 1,242 | $ | 3,940 | $ | 1,366 | $ | 10,506 | ||||||||||||||
Purchase commitments | 852 | 776 | 74 | 1 | 1 | — | — | |||||||||||||||||||||
Other contractual commitments | 175 | 105 | 63 | 5 | 2 | — | — | |||||||||||||||||||||
Operating lease obligations | 650 | 75 | 62 | 51 | 39 | 36 | 387 | |||||||||||||||||||||
Total | $ | 22,618 | $ | 1,522 | $ | 3,520 | $ | 1,299 | $ | 3,982 | $ | 1,402 | $ | 10,893 |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
November 4, 2018 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 6 | $ | 2,461 | $ | 1,825 | $ | — | $ | 4,292 | ||||||||||||
Trade accounts receivable, net | — | — | — | 3,325 | — | 3,325 | ||||||||||||||||||
Inventory | — | — | — | 1,124 | — | 1,124 | ||||||||||||||||||
Intercompany receivable | 56 | 40 | 182 | 103 | (381 | ) | — | |||||||||||||||||
Intercompany loan receivable | — | 46 | 9,780 | 4,667 | (14,493 | ) | — | |||||||||||||||||
Other current assets | 52 | — | 37 | 277 | — | 366 | ||||||||||||||||||
Total current assets | 108 | 92 | 12,460 | 11,321 | (14,874 | ) | 9,107 | |||||||||||||||||
Long-term assets: | ||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 772 | 1,863 | — | 2,635 | ||||||||||||||||||
Goodwill | — | — | 1,360 | 25,553 | — | 26,913 | ||||||||||||||||||
Intangible assets, net | — | — | 84 | 10,678 | — | 10,762 | ||||||||||||||||||
Investment in subsidiaries | 35,268 | 35,271 | 46,745 | 35,268 | (152,552 | ) | — | |||||||||||||||||
Intercompany loan receivable, long-term | — | — | — | 991 | (991 | ) | — | |||||||||||||||||
Other long-term assets | — | — | 250 | 457 | — | 707 | ||||||||||||||||||
Total assets | $ | 35,376 | $ | 35,363 | $ | 61,671 | $ | 86,131 | $ | (168,417 | ) | $ | 50,124 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 19 | $ | — | $ | 44 | $ | 748 | $ | — | $ | 811 | ||||||||||||
Employee compensation and benefits | — | — | 272 | 443 | — | 715 | ||||||||||||||||||
Intercompany payable | 9 | 93 | 58 | 221 | (381 | ) | — | |||||||||||||||||
Intercompany loan payable | 8,691 | — | 4,713 | 1,089 | (14,493 | ) | — | |||||||||||||||||
Other current liabilities | — | 2 | 219 | 591 | — | 812 | ||||||||||||||||||
Total current liabilities | 8,719 | 95 | 5,306 | 3,092 | (14,874 | ) | 2,338 | |||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Long-term debt | — | — | 17,456 | 37 | — | 17,493 | ||||||||||||||||||
Deferred tax liabilities | — | — | (47 | ) | 216 | — | 169 | |||||||||||||||||
Intercompany loan payable, long-term | — | — | 991 | — | (991 | ) | — | |||||||||||||||||
Unrecognized tax benefits | — | — | 2,563 | 525 | — | 3,088 | ||||||||||||||||||
Other long-term liabilities | — | — | 131 | 248 | — | 379 | ||||||||||||||||||
Total liabilities | 8,719 | 95 | 26,400 | 4,118 | (15,865 | ) | 23,467 | |||||||||||||||||
Total Broadcom Inc. stockholders’ equity | 26,657 | 35,268 | 35,271 | 82,013 | (152,552 | ) | 26,657 | |||||||||||||||||
Total liabilities and equity | $ | 35,376 | $ | 35,363 | $ | 61,671 | $ | 86,131 | $ | (168,417 | ) | $ | 50,124 |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||||||
October 29, 2017 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 194 | $ | 7,555 | $ | 3,455 | $ | — | $ | 11,204 | ||||||||||||
Trade accounts receivable, net | — | — | — | 2,448 | — | 2,448 | ||||||||||||||||||
Inventory | — | — | — | 1,447 | — | 1,447 | ||||||||||||||||||
Intercompany receivable | — | 32 | 279 | 309 | (620 | ) | — | |||||||||||||||||
Intercompany loan receivable | — | 28 | 1,891 | 8,849 | (10,768 | ) | — | |||||||||||||||||
Other current assets | — | — | 350 | 374 | — | 724 | ||||||||||||||||||
Total current assets | — | 254 | 10,075 | 16,882 | (11,388 | ) | 15,823 | |||||||||||||||||
Long-term assets: | ||||||||||||||||||||||||
Property, plant and equipment, net | — | — | 207 | 2,392 | — | 2,599 | ||||||||||||||||||
Goodwill | — | — | 1,360 | 23,346 | — | 24,706 | ||||||||||||||||||
Intangible assets, net | — | — | — | 10,832 | — | 10,832 | ||||||||||||||||||
Investment in subsidiaries | 20,285 | 23,112 | 7,709 | 22,776 | (73,882 | ) | — | |||||||||||||||||
Intercompany loan receivable, long-term | — | — | 41,547 | — | (41,547 | ) | — | |||||||||||||||||
Other long-term assets | — | — | 213 | 245 | — | 458 | ||||||||||||||||||
Total assets | $ | 20,285 | $ | 23,366 | $ | 61,111 | $ | 76,473 | $ | (126,817 | ) | $ | 54,418 | |||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | 7 | $ | 72 | $ | 1,026 | $ | — | $ | 1,105 | ||||||||||||
Employee compensation and benefits | — | — | 274 | 352 | — | 626 | ||||||||||||||||||
Current portion of long-term debt | — | — | 117 | — | — | 117 | ||||||||||||||||||
Intercompany payable | — | 123 | 186 | 311 | (620 | ) | — | |||||||||||||||||
Intercompany loan payable | — | 50 | 8,799 | 1,919 | (10,768 | ) | — | |||||||||||||||||
Other current liabilities | — | — | 254 | 427 | — | 681 | ||||||||||||||||||
Total current liabilities | — | 180 | 9,702 | 4,035 | (11,388 | ) | 2,529 | |||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Long-term debt | — | — | 17,431 | — | — | 17,431 | ||||||||||||||||||
Deferred tax liabilities | — | — | 10,293 | (274 | ) | — | 10,019 | |||||||||||||||||
Intercompany loan payable, long-term | — | — | — | 41,547 | (41,547 | ) | — | |||||||||||||||||
Unrecognized tax benefits | — | — | 497 | 514 | — | 1,011 | ||||||||||||||||||
Other long-term liabilities | — | — | 76 | 166 | — | 242 | ||||||||||||||||||
Total liabilities | — | 180 | 37,999 | 45,988 | (52,935 | ) | 31,232 | |||||||||||||||||
Total Broadcom Inc. stockholders’ equity | 20,285 | 20,285 | 23,112 | 30,485 | (73,882 | ) | 20,285 | |||||||||||||||||
Noncontrolling interest | — | 2,901 | — | — | — | 2,901 | ||||||||||||||||||
Total liabilities and equity | $ | 20,285 | $ | 23,366 | $ | 61,111 | $ | 76,473 | $ | (126,817 | ) | $ | 54,418 |
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
November 4, 2018 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | — | $ | 20,848 | $ | — | $ | 20,848 | ||||||||||||
Intercompany revenue | — | — | 1,924 | — | (1,924 | ) | — | |||||||||||||||||
Total revenue | — | — | 1,924 | 20,848 | (1,924 | ) | 20,848 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 132 | 6,889 | — | 7,021 | ||||||||||||||||||
Intercompany cost of products sold | — | — | — | 126 | (126 | ) | — | |||||||||||||||||
Purchase accounting effect on inventory | — | — | — | 70 | — | 70 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | — | 3,004 | — | 3,004 | ||||||||||||||||||
Restructuring charges | — | — | 1 | 19 | — | 20 | ||||||||||||||||||
Total cost of products sold | — | — | 133 | 10,108 | (126 | ) | 10,115 | |||||||||||||||||
Gross margin | — | — | 1,791 | 10,740 | (1,798 | ) | 10,733 | |||||||||||||||||
Research and development | — | — | 1,651 | 2,117 | — | 3,768 | ||||||||||||||||||
Intercompany operating expense | — | — | — | 1,798 | (1,798 | ) | — | |||||||||||||||||
Selling, general and administrative | 31 | 80 | 297 | 648 | — | 1,056 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | — | 541 | — | 541 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 53 | 166 | — | 219 | ||||||||||||||||||
Litigation settlements | — | — | 14 | — | — | 14 | ||||||||||||||||||
Total operating expenses | 31 | 80 | 2,015 | 5,270 | (1,798 | ) | 5,598 | |||||||||||||||||
Operating income (loss) | (31 | ) | (80 | ) | (224 | ) | 5,470 | — | 5,135 | |||||||||||||||
Interest expense | — | — | (626 | ) | (2 | ) | — | (628 | ) | |||||||||||||||
Intercompany interest expense | (67 | ) | — | (199 | ) | (1,449 | ) | 1,715 | — | |||||||||||||||
Impairment on investment | — | — | — | (106 | ) | — | (106 | ) | ||||||||||||||||
Other income, net | — | 4 | 88 | 52 | — | 144 | ||||||||||||||||||
Intercompany interest income | — | 1 | 1,516 | 198 | (1,715 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | 111 | 230 | (56 | ) | (285 | ) | — | — | ||||||||||||||||
Income from continuing operations before income taxes and earnings in subsidiaries | 13 | 155 | 499 | 3,878 | — | 4,545 | ||||||||||||||||||
Provision for (benefit from) income taxes | 44 | 2 | (8,043 | ) | (87 | ) | — | (8,084 | ) | |||||||||||||||
Income (loss) from continuing operations before earnings in subsidiaries | (31 | ) | 153 | 8,542 | 3,965 | — | 12,629 | |||||||||||||||||
Earnings in subsidiaries | 12,290 | 12,654 | 4,114 | 14,809 | (43,867 | ) | — | |||||||||||||||||
Income from continuing operations and earnings in subsidiaries | 12,259 | 12,807 | 12,656 | 18,774 | (43,867 | ) | 12,629 | |||||||||||||||||
Loss from discontinued operations, net of income taxes | — | — | (2 | ) | (17 | ) | — | (19 | ) | |||||||||||||||
Net income | 12,259 | 12,807 | 12,654 | 18,757 | (43,867 | ) | 12,610 | |||||||||||||||||
Net income attributable to noncontrolling interest | — | 351 | — | — | — | 351 | ||||||||||||||||||
Net income attributable to common stock | $ | 12,259 | $ | 12,456 | $ | 12,654 | $ | 18,757 | $ | (43,867 | ) | $ | 12,259 | |||||||||||
Net income | $ | 12,259 | $ | 12,807 | $ | 12,654 | $ | 18,757 | $ | (43,867 | ) | $ | 12,610 | |||||||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||
Comprehensive income | 12,259 | 12,807 | 12,654 | 18,749 | (43,867 | ) | 12,602 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | 351 | — | — | — | 351 | ||||||||||||||||||
Comprehensive income attributable to common stock | $ | 12,259 | $ | 12,456 | $ | 12,654 | $ | 18,749 | $ | (43,867 | ) | $ | 12,251 |
Condensed Consolidating Statements of Operations and Comprehensive Loss | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 29, 2017 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 73 | $ | 17,563 | $ | — | $ | 17,636 | ||||||||||||
Intercompany revenue | — | — | 2,046 | 8 | (2,054 | ) | — | |||||||||||||||||
Total revenue | — | — | 2,119 | 17,571 | (2,054 | ) | 17,636 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 154 | 6,439 | — | 6,593 | ||||||||||||||||||
Intercompany cost of products sold | — | — | (12 | ) | 174 | (162 | ) | — | ||||||||||||||||
Purchase accounting effect on inventory | — | — | — | 4 | — | 4 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 7 | 2,504 | — | 2,511 | ||||||||||||||||||
Restructuring charges | — | — | 5 | 14 | — | 19 | ||||||||||||||||||
Total cost of products sold | — | — | 154 | 9,135 | (162 | ) | 9,127 | |||||||||||||||||
Gross margin | — | — | 1,965 | 8,436 | (1,892 | ) | 8,509 | |||||||||||||||||
Research and development | — | — | 1,490 | 1,802 | — | 3,292 | ||||||||||||||||||
Intercompany operating expense | — | — | (66 | ) | 1,958 | (1,892 | ) | — | ||||||||||||||||
Selling, general and administrative | — | 23 | 339 | 425 | — | 787 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 7 | 1,757 | — | 1,764 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 54 | 107 | — | 161 | ||||||||||||||||||
Litigation settlements | — | — | — | 122 | — | 122 | ||||||||||||||||||
Total operating expenses | — | 23 | 1,824 | 6,171 | (1,892 | ) | 6,126 | |||||||||||||||||
Operating income (loss) | — | (23 | ) | 141 | 2,265 | — | 2,383 | |||||||||||||||||
Interest expense | — | — | (411 | ) | (43 | ) | — | (454 | ) | |||||||||||||||
Intercompany interest expense | — | (12 | ) | (274 | ) | (1,420 | ) | 1,706 | — | |||||||||||||||
Loss on extinguishment of debt | — | — | (59 | ) | (107 | ) | — | (166 | ) | |||||||||||||||
Other income, net | — | 2 | 30 | 30 | — | 62 | ||||||||||||||||||
Intercompany interest income | — | 1 | 1,425 | 280 | (1,706 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | — | 1,390 | (589 | ) | (801 | ) | — | — | ||||||||||||||||
Income from continuing operations before income taxes and earnings in subsidiaries | — | 1,358 | 263 | 204 | — | 1,825 | ||||||||||||||||||
Provision for (benefit from) income taxes | — | — | 67 | (32 | ) | — | 35 | |||||||||||||||||
Income from continuing operations before earnings in subsidiaries | — | 1,358 | 196 | 236 | — | 1,790 | ||||||||||||||||||
Earnings in subsidiaries | 1,692 | 426 | 243 | 4,453 | (6,814 | ) | — | |||||||||||||||||
Income from continuing operations and earnings in subsidiaries | 1,692 | 1,784 | 439 | 4,689 | (6,814 | ) | 1,790 | |||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | (13 | ) | 7 | — | (6 | ) | ||||||||||||||||
Net income | $ | 1,692 | $ | 1,784 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,784 | |||||||||||
Net income attributable to noncontrolling interest | — | 92 | — | — | — | 92 | ||||||||||||||||||
Net income attributable to common stock | $ | 1,692 | $ | 1,692 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,692 | |||||||||||
Net income | $ | 1,692 | $ | 1,784 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,784 | |||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Change in actuarial gain and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | 43 | — | 43 | ||||||||||||||||||
Other comprehensive income | — | — | — | 43 | — | 43 | ||||||||||||||||||
Comprehensive income | 1,692 | 1,784 | 426 | 4,739 | (6,814 | ) | 1,827 | |||||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | 92 | — | — | — | 92 | ||||||||||||||||||
Comprehensive income attributable to common stock | $ | 1,692 | $ | 1,692 | $ | 426 | $ | 4,739 | $ | (6,814 | ) | $ | 1,735 |
Condensed Consolidating Statements of Operations and Comprehensive Income | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 30, 2016 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net revenue | $ | — | $ | — | $ | 402 | $ | 12,838 | $ | — | $ | 13,240 | ||||||||||||
Intercompany revenue | — | — | 353 | 55 | (408 | ) | — | |||||||||||||||||
Total revenue | — | — | 755 | 12,893 | (408 | ) | 13,240 | |||||||||||||||||
Cost of products sold: | ||||||||||||||||||||||||
Cost of products sold | — | — | 237 | 5,058 | — | 5,295 | ||||||||||||||||||
Intercompany cost of products sold | — | — | (149 | ) | 557 | (408 | ) | — | ||||||||||||||||
Purchase accounting effect on inventory | — | — | 15 | 1,170 | — | 1,185 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 14 | 749 | — | 763 | ||||||||||||||||||
Restructuring charges | — | — | 36 | 21 | — | 57 | ||||||||||||||||||
Total cost of products sold | — | — | 153 | 7,555 | (408 | ) | 7,300 | |||||||||||||||||
Gross margin | — | — | 602 | 5,338 | — | 5,940 | ||||||||||||||||||
Research and development | — | — | 1,237 | 1,437 | — | 2,674 | ||||||||||||||||||
Intercompany operating expense | — | — | (1,337 | ) | 1,337 | — | — | |||||||||||||||||
Selling, general and administrative | — | 41 | 254 | 511 | — | 806 | ||||||||||||||||||
Amortization of acquisition-related intangible assets | — | — | 82 | 1,791 | — | 1,873 | ||||||||||||||||||
Restructuring, impairment and disposal charges | — | — | 309 | 687 | — | 996 | ||||||||||||||||||
Total operating expenses | — | 41 | 545 | 5,763 | — | 6,349 | ||||||||||||||||||
Operating income (loss) | — | (41 | ) | 57 | (425 | ) | — | (409 | ) | |||||||||||||||
Interest expense | — | — | (312 | ) | (273 | ) | — | (585 | ) | |||||||||||||||
Intercompany interest expense | — | (3 | ) | (262 | ) | (3 | ) | 268 | — | |||||||||||||||
Loss on extinguishment of debt | — | — | (113 | ) | (10 | ) | — | (123 | ) | |||||||||||||||
Other income (expense), net | — | — | (27 | ) | 37 | — | 10 | |||||||||||||||||
Intercompany interest income | — | 1 | 2 | 265 | (268 | ) | — | |||||||||||||||||
Intercompany other income (expense), net | — | 753 | (277 | ) | (476 | ) | — | — | ||||||||||||||||
Income (loss) from continuing operations before income taxes and earnings in subsidiaries | — | 710 | (932 | ) | (885 | ) | — | (1,107 | ) | |||||||||||||||
Provision for income taxes | — | — | 447 | 195 | — | 642 | ||||||||||||||||||
Income (loss) from continuing operations before loss from subsidiaries | — | 710 | (1,379 | ) | (1,080 | ) | — | (1,749 | ) | |||||||||||||||
Loss from subsidiaries | (1,739 | ) | (2,571 | ) | (1,034 | ) | (2,221 | ) | 7,565 | — | ||||||||||||||
Loss from continuing operations and loss in subsidiaries | (1,739 | ) | (1,861 | ) | (2,413 | ) | (3,301 | ) | 7,565 | (1,749 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | — | (158 | ) | 46 | — | (112 | ) | ||||||||||||||||
Net loss | (1,739 | ) | (1,861 | ) | (2,571 | ) | (3,255 | ) | 7,565 | (1,861 | ) | |||||||||||||
Net loss attributable to noncontrolling interest | — | (122 | ) | — | — | — | (122 | ) | ||||||||||||||||
Net loss attributable to common stock | $ | (1,739 | ) | $ | (1,739 | ) | $ | (2,571 | ) | $ | (3,255 | ) | $ | 7,565 | $ | (1,739 | ) | |||||||
Net loss | $ | (1,739 | ) | $ | (1,861 | ) | $ | (2,571 | ) | $ | (3,255 | ) | $ | 7,565 | $ | (1,861 | ) | |||||||
Other comprehensive loss, net of tax: | ||||||||||||||||||||||||
Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | — | — | — | (61 | ) | — | (61 | ) | ||||||||||||||||
Other comprehensive loss | — | — | — | (61 | ) | — | (61 | ) | ||||||||||||||||
Comprehensive loss | (1,739 | ) | (1,861 | ) | (2,571 | ) | (3,316 | ) | 7,565 | (1,922 | ) | |||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | (122 | ) | — | — | — | (122 | ) | ||||||||||||||||
Comprehensive loss attributable to common stock | $ | (1,739 | ) | $ | (1,739 | ) | $ | (2,571 | ) | $ | (3,316 | ) | $ | 7,565 | $ | (1,800 | ) |
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
November 4, 2018 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income | $ | 12,259 | $ | 12,807 | $ | 12,654 | $ | 18,757 | $ | (43,867 | ) | $ | 12,610 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | (12,323 | ) | (12,926 | ) | (12,906 | ) | (9,671 | ) | 44,096 | (3,730 | ) | |||||||||||||
Net cash provided by (used in) operating activities | (64 | ) | (119 | ) | (252 | ) | 9,086 | 229 | 8,880 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Intercompany contributions paid | — | (102 | ) | (9,099 | ) | (3,002 | ) | 12,203 | — | |||||||||||||||
Distributions received from subsidiaries | — | 1,521 | — | 1,521 | (3,042 | ) | — | |||||||||||||||||
Net change in intercompany loans | — | (19 | ) | 2,637 | (164 | ) | (2,454 | ) | — | |||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | — | (4,800 | ) | — | (4,800 | ) | ||||||||||||||||
Proceeds from sales of businesses | — | — | — | 773 | — | 773 | ||||||||||||||||||
Purchases of property, plant and equipment | — | — | (196 | ) | (497 | ) | 58 | (635 | ) | |||||||||||||||
Proceeds from disposals of property, plant and equipment | — | — | 55 | 242 | (58 | ) | 239 | |||||||||||||||||
Purchases of investments | — | — | (50 | ) | (199 | ) | — | (249 | ) | |||||||||||||||
Proceeds from sales and maturities of investments | — | — | 54 | — | — | 54 | ||||||||||||||||||
Other | — | — | (50 | ) | (6 | ) | — | (56 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | — | 1,400 | (6,649 | ) | (6,132 | ) | 6,707 | (4,674 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Intercompany contributions received | — | — | 3,231 | 9,201 | (12,432 | ) | — | |||||||||||||||||
Dividend and distribution payments | (1,477 | ) | (1,521 | ) | (1,521 | ) | (1,521 | ) | 3,042 | (2,998 | ) | |||||||||||||
Net intercompany borrowings | 8,690 | (50 | ) | 261 | (11,355 | ) | 2,454 | — | ||||||||||||||||
Repayment of debt | — | — | (117 | ) | (856 | ) | — | (973 | ) | |||||||||||||||
Repurchase of common stock | (7,258 | ) | — | — | — | — | (7,258 | ) | ||||||||||||||||
Issuance of common stock, net of shares withheld for employee taxes | 109 | 102 | (20 | ) | (35 | ) | — | 156 | ||||||||||||||||
Payment of capital lease obligations | — | — | — | (21 | ) | — | (21 | ) | ||||||||||||||||
Other | — | — | (27 | ) | 3 | — | (24 | ) | ||||||||||||||||
Net cash provided by (used in) financing activities | 64 | (1,469 | ) | 1,807 | (4,584 | ) | (6,936 | ) | (11,118 | ) | ||||||||||||||
Net change in cash and cash equivalents | — | (188 | ) | (5,094 | ) | (1,630 | ) | — | (6,912 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | — | 194 | 7,555 | 3,455 | — | 11,204 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 6 | $ | 2,461 | $ | 1,825 | $ | — | $ | 4,292 |
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 29, 2017 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income | $ | 1,692 | $ | 1,784 | $ | 426 | $ | 4,696 | $ | (6,814 | ) | $ | 1,784 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | (1,692 | ) | (1,980 | ) | 2,282 | (822 | ) | 6,979 | 4,767 | |||||||||||||||
Net cash provided by (used in) operating activities | — | (196 | ) | 2,708 | 3,874 | 165 | 6,551 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Intercompany contributions paid | — | (40 | ) | — | (40 | ) | 80 | — | ||||||||||||||||
Distributions received from subsidiaries | — | 1,834 | — | 1,858 | (3,692 | ) | — | |||||||||||||||||
Net change in intercompany loans | — | 410 | (286 | ) | 5,664 | (5,788 | ) | — | ||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | — | (40 | ) | — | (40 | ) | ||||||||||||||||
Proceeds from sales of businesses | — | — | — | 10 | — | 10 | ||||||||||||||||||
Purchases of property, plant and equipment | — | — | (254 | ) | (841 | ) | 26 | (1,069 | ) | |||||||||||||||
Proceeds from disposals of property, plant and equipment | — | — | 25 | 442 | (26 | ) | 441 | |||||||||||||||||
Purchases of investments | — | — | (200 | ) | (7 | ) | — | (207 | ) | |||||||||||||||
Proceeds from sales and maturities of investments | — | — | 200 | — | — | 200 | ||||||||||||||||||
Other | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||
Net cash provided by (used in) investing activities | — | 2,204 | (515 | ) | 7,037 | (9,400 | ) | (674 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Intercompany contributions received | — | — | 205 | 40 | (245 | ) | — | |||||||||||||||||
Dividend and distribution payments | — | (1,745 | ) | (1,834 | ) | (1,858 | ) | 3,692 | (1,745 | ) | ||||||||||||||
Net intercompany borrowings | — | (379 | ) | (5,797 | ) | 388 | 5,788 | — | ||||||||||||||||
Proceeds from issuance of long-term debt | — | — | 17,426 | — | — | 17,426 | ||||||||||||||||||
Repayment of debt | — | — | (5,704 | ) | (7,964 | ) | — | (13,668 | ) | |||||||||||||||
Payment of debt issuance costs | — | — | (24 | ) | — | — | (24 | ) | ||||||||||||||||
Issuance of common stock, net of shares withheld for employee taxes | — | 257 | — | — | — | 257 | ||||||||||||||||||
Payment of capital lease obligations | — | — | (2 | ) | (14 | ) | — | (16 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | — | (1,867 | ) | 4,270 | (9,408 | ) | 9,235 | 2,230 | ||||||||||||||||
Net change in cash and cash equivalents | — | 141 | 6,463 | 1,503 | — | 8,107 | ||||||||||||||||||
Cash and cash equivalents at the beginning of period | — | 53 | 1,092 | 1,952 | — | 3,097 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 194 | $ | 7,555 | $ | 3,455 | $ | — | $ | 11,204 |
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||
October 30, 2016 | ||||||||||||||||||||||||
Parent Guarantor | Subsidiary Guarantor | Subsidiary Issuers | Non-Guarantor Subsidiaries | Eliminations | Consolidated Totals | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (1,739 | ) | $ | (1,861 | ) | $ | (2,571 | ) | $ | (3,255 | ) | $ | 7,565 | $ | (1,861 | ) | |||||||
Total adjustments to reconcile net loss to net cash provided by (used in) operating activities | 1,739 | 1,818 | 2,303 | 6,637 | (7,225 | ) | 5,272 | |||||||||||||||||
Net cash provided by (used in) operating activities | — | (43 | ) | (268 | ) | 3,382 | 340 | 3,411 | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Intercompany contributions paid | — | (35 | ) | (7,400 | ) | (4,970 | ) | 12,405 | — | |||||||||||||||
Distributions received from subsidiaries | — | 250 | 356 | 250 | (856 | ) | — | |||||||||||||||||
Net change in intercompany loans | — | — | (102 | ) | (10,587 | ) | 10,689 | — | ||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (10,965 | ) | 910 | — | (10,055 | ) | ||||||||||||||||
Proceeds from sales of businesses | — | — | 58 | 840 | — | 898 | ||||||||||||||||||
Purchases of property, plant and equipment | — | — | (80 | ) | (643 | ) | — | (723 | ) | |||||||||||||||
Proceeds from disposals of property, plant and equipment | — | — | — | 5 | — | 5 | ||||||||||||||||||
Purchases of investments | — | — | — | (58 | ) | — | (58 | ) | ||||||||||||||||
Proceeds from sales and maturities of investments | — | — | 13 | 91 | — | 104 | ||||||||||||||||||
Other | — | — | (2 | ) | (9 | ) | — | (11 | ) | |||||||||||||||
Net cash provided by (used in) investing activities | — | 215 | (18,122 | ) | (14,171 | ) | 22,238 | (9,840 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Intercompany contributions received | — | — | 5,310 | 7,435 | (12,745 | ) | — | |||||||||||||||||
Dividend and distribution payments | — | (628 | ) | (250 | ) | (728 | ) | 856 | (750 | ) | ||||||||||||||
Net intercompany borrowings | — | 286 | 10,301 | 102 | (10,689 | ) | — | |||||||||||||||||
Proceeds from issuance of long-term debt | — | — | 9,551 | 9,959 | — | 19,510 | ||||||||||||||||||
Repayment of debt | — | — | (5,358 | ) | (5,959 | ) | — | (11,317 | ) | |||||||||||||||
Payment of debt issuance costs | — | — | (77 | ) | (46 | ) | — | (123 | ) | |||||||||||||||
Excess tax benefits from stock-based compensation | — | — | 5 | 84 | — | 89 | ||||||||||||||||||
Issuance of common stock, net of shares withheld for employee taxes | — | 223 | — | 72 | — | 295 | ||||||||||||||||||
Net cash provided by (used in) financing activities | — | (119 | ) | 19,482 | 10,919 | (22,578 | ) | 7,704 | ||||||||||||||||
Net change in cash and cash equivalents | — | 53 | 1,092 | 130 | — | 1,275 | ||||||||||||||||||
Cash and cash equivalents at beginning of period | — | — | — | 1,822 | — | 1,822 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 53 | $ | 1,092 | $ | 1,952 | $ | — | $ | 3,097 |
Fiscal Year | ||||||||||||||||||||||||||||
Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Debt principal and interest | $ | 20,941 | $ | 566 | $ | 3,321 | $ | 1,242 | $ | 3,940 | $ | 1,366 | $ | 10,506 | ||||||||||||||
Purchase commitments | 852 | 776 | 74 | 1 | 1 | — | — | |||||||||||||||||||||
Other contractual commitments | 175 | 105 | 63 | 5 | 2 | — | — | |||||||||||||||||||||
Operating lease obligations | 650 | 75 | 62 | 51 | 39 | 36 | 387 | |||||||||||||||||||||
Total | $ | 22,618 | $ | 1,522 | $ | 3,520 | $ | 1,299 | $ | 3,982 | $ | 1,402 | $ | 10,893 |
Effective Interest Rate | November 4, 2018 | October 29, 2017 | |||||||||
(In millions) | |||||||||||
2017 Senior Notes | |||||||||||
2.375% notes due January 2020 | 2.615 | % | $ | 2,750 | $ | 2,750 | |||||
3.000% notes due January 2022 | 3.214 | % | 3,500 | 3,500 | |||||||
3.625% notes due January 2024 | 3.744 | % | 2,500 | 2,500 | |||||||
3.875% notes due January 2027 | 4.018 | % | 4,800 | 4,800 | |||||||
2.200% notes due January 2021 | 2.406 | % | 750 | 750 | |||||||
2.650% notes due January 2023 | 2.781 | % | 1,000 | 1,000 | |||||||
3.125% notes due January 2025 | 3.234 | % | 1,000 | 1,000 | |||||||
3.500% notes due January 2028 | 3.596 | % | 1,250 | 1,250 | |||||||
17,550 | 17,550 | ||||||||||
Assumed BRCM Senior Notes | |||||||||||
2.70% notes due November 2018 | 2.700 | % | — | 117 | |||||||
2.50% - 4.50% notes due August 2022 - August 2034 | 2.50% - 4.50% | 22 | 22 | ||||||||
22 | 139 | ||||||||||
Assumed Brocade Convertible Notes | |||||||||||
1.375% convertible notes due January 2020 | 0.628 | % | 37 | — | |||||||
Total principal amount outstanding | 17,609 | 17,689 | |||||||||
Less: Unaccreted discount and unamortized debt issuance costs | (116 | ) | (141 | ) | |||||||
Carrying value of debt | $ | 17,493 | $ | 17,548 |
Fiscal Year: | Future Scheduled Principal Payments | |||
(In millions) | ||||
2019 | $ | — | ||
2020 | 2,787 | |||
2021 | 750 | |||
2022 | 3,509 | |||
2023 | 1,000 | |||
Thereafter | 9,563 | |||
Total | $ | 17,609 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions, except per share data) | ||||||||||||
Cash dividends and distributions declared and paid per share/unit | $ | 7.00 | $ | 4.08 | $ | 1.94 | ||||||
Cash dividends paid to stockholders | $ | 2,921 | $ | 1,653 | $ | 716 | ||||||
Cash distributions paid to limited partners | $ | 77 | $ | 92 | $ | 34 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions, except per share data) | ||||||||||||
Numerator - Basic: | ||||||||||||
Income (loss) from continuing operations | $ | 12,629 | $ | 1,790 | $ | (1,749 | ) | |||||
Less: Income (loss) from continuing operations attributable to noncontrolling interest | 352 | 92 | (116 | ) | ||||||||
Income (loss) from continuing operations attributable to common stock | 12,277 | 1,698 | (1,633 | ) | ||||||||
Loss from discontinued operations, net of income taxes | (19 | ) | (6 | ) | (112 | ) | ||||||
Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest | (1 | ) | — | (6 | ) | |||||||
Loss from discontinued operations, net of income taxes, attributable to common stock | (18 | ) | (6 | ) | (106 | ) | ||||||
Net income (loss) attributable to common stock | $ | 12,259 | $ | 1,692 | $ | (1,739 | ) | |||||
Numerator - Diluted: | ||||||||||||
Income (loss) from continuing operations | $ | 12,277 | $ | 1,698 | $ | (1,749 | ) | |||||
Loss from discontinued operations, net of income taxes | (18 | ) | (6 | ) | (112 | ) | ||||||
Net income (loss) | $ | 12,259 | $ | 1,692 | $ | (1,861 | ) |
Denominator: | ||||||||||||
Weighted-average shares outstanding - basic | 418 | 405 | 366 | |||||||||
Dilutive effect of equity awards | 13 | 16 | — | |||||||||
Exchange of noncontrolling interest | — | — | 17 | |||||||||
Weighted-average shares outstanding - diluted | 431 | 421 | 383 | |||||||||
Basic income (loss) per share: | ||||||||||||
Income (loss) per share from continuing operations | $ | 29.37 | $ | 4.19 | $ | (4.46 | ) | |||||
Loss per share from discontinued operations | (0.04 | ) | (0.01 | ) | (0.29 | ) | ||||||
Net income (loss) per share | $ | 29.33 | $ | 4.18 | $ | (4.75 | ) | |||||
Diluted income (loss) per share: | ||||||||||||
Income (loss) per share from continuing operations | $ | 28.48 | $ | 4.03 | $ | (4.57 | ) | |||||
Loss per share from discontinued operations | (0.04 | ) | (0.01 | ) | (0.29 | ) | ||||||
Net income (loss) per share | $ | 28.44 | $ | 4.02 | $ | (4.86 | ) | |||||
Potentially dilutive shares excluded from the calculation of diluted income (loss) per share because their effect would have been antidilutive (a) | 9 | 22 | 12 |
Wired Infrastructure | Wireless Communications | Enterprise Storage | Industrial & Other | Total | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance as of October 30, 2016 | $ | 17,641 | $ | 5,952 | $ | 995 | $ | 144 | $ | 24,732 | ||||||||||
Broadcom Merger adjustments | (25 | ) | (7 | ) | — | — | (32 | ) | ||||||||||||
Acquisitions | 6 | — | — | — | 6 | |||||||||||||||
Balance as of October 29, 2017 | 17,622 | 5,945 | 995 | 144 | 24,706 | |||||||||||||||
Acquisitions | 83 | — | 2,117 | 7 | 2,207 | |||||||||||||||
Balance as of November 4, 2018 | $ | 17,705 | $ | 5,945 | $ | 3,112 | $ | 151 | $ | 26,913 |
Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||
(In millions) | ||||||||||||
As of November 4, 2018: | ||||||||||||
Purchased technology | $ | 15,806 | $ | (6,816 | ) | $ | 8,990 | |||||
Customer contracts and related relationships | 1,792 | (878 | ) | 914 | ||||||||
Trade names | 578 | (170 | ) | 408 | ||||||||
Other | 239 | (53 | ) | 186 | ||||||||
Intangible assets subject to amortization | 18,415 | (7,917 | ) | 10,498 | ||||||||
IPR&D | 264 | — | 264 | |||||||||
Total | $ | 18,679 | $ | (7,917 | ) | $ | 10,762 | |||||
As of October 29, 2017: | ||||||||||||
Purchased technology | $ | 12,724 | $ | (4,265 | ) | $ | 8,459 | |||||
Customer contracts and related relationships | 4,240 | (3,100 | ) | 1,140 | ||||||||
Trade names | 528 | (117 | ) | 411 | ||||||||
Other | 135 | (25 | ) | 110 | ||||||||
Intangible assets subject to amortization | 17,627 | (7,507 | ) | 10,120 | ||||||||
IPR&D | 712 | — | 712 | |||||||||
Total | $ | 18,339 | $ | (7,507 | ) | $ | 10,832 |
Fiscal Year: | Expected Amortization Expense | |||
(In millions) | ||||
2019 | $ | 2,882 | ||
2020 | 2,437 | |||
2021 | 1,945 | |||
2022 | 1,441 | |||
2023 | 650 | |||
Thereafter | 1,143 | |||
Total | $ | 10,498 |
Amortizable intangible assets: | November 4, 2018 | October 29, 2017 | ||
(In years) | ||||
Purchased technology | 6 | 5 | ||
Customer contracts and related relationships | 5 | 4 | ||
Trade names | 12 | 13 | ||
Other | 10 | 10 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Domestic income (loss) | $ | (705 | ) | $ | 2,102 | $ | 1,365 | |||||
Foreign income (loss) | 5,250 | (277 | ) | (2,472 | ) | |||||||
Income (loss) from continuing operations before income taxes | $ | 4,545 | $ | 1,825 | $ | (1,107 | ) |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Current tax expense: | ||||||||||||
Domestic | $ | 293 | $ | 112 | $ | 59 | ||||||
Foreign | 171 | 158 | 165 | |||||||||
464 | 270 | 224 | ||||||||||
Deferred tax expense (benefit): | ||||||||||||
Domestic | (8,769 | ) | (1 | ) | 9 | |||||||
Foreign | 221 | (234 | ) | 409 | ||||||||
(8,548 | ) | (235 | ) | 418 | ||||||||
Total provision for (benefit from) income taxes | $ | (8,084 | ) | $ | 35 | $ | 642 |
Fiscal Year | |||||||||
2018 | 2017 | 2016 | |||||||
Statutory tax rate | 21.0 | % | 17.0 | % | 17.0 | % | |||
2017 Tax reform | (160.1 | ) | — | — | |||||
Withholding tax | (25.6 | ) | — | — | |||||
Foreign income taxed at different rates | (16.3 | ) | (0.8 | ) | (89.7 | ) | |||
Excess tax benefits from stock-based compensation | (4.0 | ) | — | — | |||||
Research and development credit | (2.9 | ) | — | — | |||||
Deemed inclusion of foreign earnings | 4.7 | — | — | ||||||
Tax holidays and concessions | — | (13.0 | ) | 15.3 | |||||
Other, net | 5.3 | (1.3 | ) | (0.6 | ) | ||||
Actual tax rate on income (loss) before income taxes | (177.9 | )% | 1.9 | % | (58.0 | )% |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Deferred income tax assets: | ||||||||
Depreciation and amortization | $ | 7 | $ | 8 | ||||
Employee benefits | 119 | 145 | ||||||
Employee stock awards | 159 | 180 | ||||||
Net operating loss carryovers and credit carryovers | 1,421 | 2,356 | ||||||
Other deferred income tax assets | 100 | 70 | ||||||
Gross deferred income tax assets | 1,806 | 2,759 | ||||||
Less valuation allowance | (1,347 | ) | (1,447 | ) | ||||
Deferred income tax assets | 459 | 1,312 | ||||||
Deferred income tax liabilities: | ||||||||
Depreciation and amortization | 316 | 96 | ||||||
Other deferred income tax liabilities | 12 | 12 | ||||||
Foreign earnings not indefinitely reinvested | 16 | 11,202 | ||||||
Deferred income tax liabilities | 344 | 11,310 | ||||||
Net deferred income tax assets (liabilities) | $ | 115 | $ | (9,998 | ) |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Other long-term assets | $ | 284 | $ | 21 | ||||
Other long-term liabilities | (169 | ) | (10,019 | ) | ||||
Net long-term income tax assets (liabilities) | $ | 115 | $ | (9,998 | ) |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Beginning balance | $ | 2,256 | $ | 1,983 | $ | 578 | ||||||
Lapse of statute of limitations | (20 | ) | (12 | ) | (8 | ) | ||||||
Increases in balances related to tax positions taken during prior periods (including those related to acquisitions made during the year) | 361 | 47 | 1,325 | |||||||||
Decreases in balances related to tax positions taken during prior periods | (289 | ) | (32 | ) | (1 | ) | ||||||
Increases in balances related to tax positions taken during current period | 1,726 | 391 | 138 | |||||||||
Decreases in balances related to settlement with taxing authorities | (4 | ) | (121 | ) | (49 | ) | ||||||
Ending balance | $ | 4,030 | $ | 2,256 | $ | 1,983 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Long-lived assets: | ||||||||
United States | $ | 1,859 | $ | 1,822 | ||||
Taiwan | 264 | 268 | ||||||
Other | 512 | 509 | ||||||
$ | 2,635 | $ | 2,599 |
• | Avago Technologies Limited, or Avago, predecessor to Broadcom-Singapore, for periods prior to February 1, 2016; |
• | Broadcom-Singapore for the period from February 1, 2016 to April 4, 2018, the effective date of the Redomiciliation Transaction; and |
• | Broadcom for periods after April 4, 2018. |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Interest payable | $ | 165 | $ | 136 | ||||
Deferred revenue | 164 | 51 | ||||||
Accrued rebates | 161 | 124 | ||||||
Tax liabilities | 162 | 123 | ||||||
Other (miscellaneous) | 160 | 247 | ||||||
Total other current liabilities | $ | 812 | $ | 681 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Unrecognized tax benefits (a) (b) | $ | 3,088 | $ | 1,011 | ||||
Deferred tax liabilities (a) | 169 | 10,019 | ||||||
Tax indemnification liability | 116 | — | ||||||
Other (miscellaneous) | 263 | 242 | ||||||
Total other long-term liabilities | $ | 3,636 | $ | 11,272 |
Pension Benefits | Post-Retirement Benefits | |||||||||||||||||||||||
Fiscal Year | Fiscal Year | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Service cost | $ | 4 | $ | 4 | $ | 3 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 51 | 53 | 59 | 3 | 3 | 3 | ||||||||||||||||||
Expected return on plan assets | (51 | ) | (65 | ) | (72 | ) | (4 | ) | (4 | ) | (4 | ) | ||||||||||||
Other | 1 | 1 | 4 | — | — | — | ||||||||||||||||||
Net periodic benefit (income) cost | $ | 5 | $ | (7 | ) | $ | (6 | ) | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | |||||||
Net actuarial (gain) loss | $ | 14 | $ | (60 | ) | $ | 88 | $ | (3 | ) | $ | (3 | ) | $ | 11 |
Pension Benefits | Post-Retirement Benefits | |||||||||||||||
November 4, 2018 | October 29, 2017 | November 4, 2018 | October 29, 2017 | |||||||||||||
(In millions) | ||||||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets — beginning of period | $ | 1,426 | $ | 1,050 | $ | 83 | $ | 78 | ||||||||
Actual return on plan assets | (65 | ) | 108 | — | 7 | |||||||||||
Employer contributions | 130 | 361 | — | — | ||||||||||||
Payments from plan assets | (93 | ) | (93 | ) | (2 | ) | (2 | ) | ||||||||
Foreign currency impact | (4 | ) | — | — | — | |||||||||||
Fair value of plan assets — end of period | 1,394 | 1,426 | 81 | 83 | ||||||||||||
Change in benefit obligations: | ||||||||||||||||
Benefit obligations — beginning of period | 1,508 | 1,566 | 80 | 79 | ||||||||||||
Service cost | 4 | 4 | — | — | ||||||||||||
Interest cost | 51 | 53 | 3 | 3 | ||||||||||||
Actuarial gain | (102 | ) | (13 | ) | (7 | ) | — | |||||||||
Benefit payments | (93 | ) | (93 | ) | (2 | ) | (2 | ) | ||||||||
Curtailments | — | (4 | ) | — | — | |||||||||||
Settlements | — | (8 | ) | — | — | |||||||||||
Plan amendment | 3 | — | — | — | ||||||||||||
Foreign currency impact | (7 | ) | 3 | — | — | |||||||||||
Benefit obligations — end of period | 1,364 | 1,508 | 74 | 80 | ||||||||||||
Overfunded (underfunded) status of benefit obligations (a) | $ | 30 | $ | (82 | ) | $ | 7 | $ | 3 | |||||||
Actuarial losses and prior service costs recognized in accumulated other comprehensive loss, net of taxes | $ | (110 | ) | $ | (85 | ) | $ | (5 | ) | $ | (6 | ) |
(a) | Substantially all amounts recognized in the consolidated balance sheets were recorded in other long-term assets and other long-term liabilities for all periods presented. |
Pension Benefits | Post-Retirement Benefits | |||||||||||||||
November 4, 2018 | October 29, 2017 | November 4, 2018 | October 29, 2017 | |||||||||||||
(In millions) | ||||||||||||||||
Projected benefit obligations | $ | 551 | $ | 701 | $ | — | $ | — | ||||||||
Accumulated benefit obligations | $ | 546 | $ | 696 | $ | 14 | $ | 15 | ||||||||
Fair value of plan assets | $ | 528 | $ | 603 | $ | — | $ | — |
Pension Benefits | Post-Retirement Benefits | |||||||||||||||
November 4, 2018 | October 29, 2017 | November 4, 2018 | October 29, 2017 | |||||||||||||
(In millions) | ||||||||||||||||
Projected benefit obligations | $ | 813 | $ | 807 | $ | — | $ | — | ||||||||
Accumulated benefit obligations | $ | 812 | $ | 805 | $ | 60 | $ | 65 | ||||||||
Fair value of plan assets | $ | 866 | $ | 823 | $ | 81 | $ | 83 |
Fiscal Years: | Pension Benefits | Post-Retirement Benefits | ||||||
(In millions) | ||||||||
2019 | $ | 93 | $ | 3 | ||||
2020 | $ | 91 | $ | 3 | ||||
2021 | $ | 91 | $ | 3 | ||||
2022 | $ | 91 | $ | 3 | ||||
2023 | $ | 91 | $ | 4 | ||||
2024-2028 | $ | 445 | $ | 20 |
November 4, 2018 | ||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(In millions) | ||||||||||||||||||
Cash equivalents | $ | 36 | (a) | $ | — | $ | — | $ | 36 | |||||||||
Equity securities: | ||||||||||||||||||
Non-U.S. equity securities | 19 | (b) | — | — | 19 | |||||||||||||
Fixed-income securities: | ||||||||||||||||||
U.S. treasuries | — | 80 | (c) | — | 80 | |||||||||||||
Corporate bonds | — | 1,229 | (c) | — | 1,229 | |||||||||||||
Municipal bonds | — | 17 | (c) | — | 17 | |||||||||||||
Government bonds | — | 13 | (c) | — | 13 | |||||||||||||
Total plan assets | $ | 55 | $ | 1,339 | $ | — | $ | 1,394 |
October 29, 2017 | ||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(In millions) | ||||||||||||||||||
Cash equivalents | $ | 943 | (a) | $ | — | $ | — | $ | 943 | |||||||||
Equity securities: | ||||||||||||||||||
Non-U.S. equity securities | 7 | (b) | — | — | 7 | |||||||||||||
Fixed-income securities: | ||||||||||||||||||
U.S. treasuries | — | 39 | (c) | — | 39 | |||||||||||||
Corporate bonds | — | 393 | (c) | — | 393 | |||||||||||||
Asset-backed and mortgage-backed securities | — | 1 | (c) | — | 1 | |||||||||||||
Municipal bonds | — | 25 | (c) | — | 25 | |||||||||||||
Government bonds | — | 18 | (c) | — | 18 | |||||||||||||
Total plan assets | $ | 950 | $ | 476 | $ | — | $ | 1,426 |
(a) | Cash equivalents primarily included short-term investment funds which consisted of short-term money market instruments that were valued based on quoted prices in active markets. |
(b) | These equity securities were valued based on quoted prices in active markets. |
(c) | These amounts consisted of investments that were traded less frequently than Level 1 securities and were valued using inputs that included quoted prices for similar assets in active markets and inputs other than quoted prices that were observable for the asset, such as interest rates, yield curves, prepayment speeds, collateral performance, broker/dealer quotes and indices that were observable at commonly quoted intervals. |
November 4, 2018 | October 29, 2017 | |||||||||||
Actual | Target | Actual | Target | |||||||||
Commingled funds - U.S. equities | — | % | — | % | 20 | % | 20 | % | ||||
Commingled funds - Non-U.S. equities | — | — | 20 | 20 | ||||||||
Commingled funds - bonds | 100 | 100 | 60 | 60 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Assumptions for Benefit Obligations as of | Assumptions for Net Periodic Benefit (Income) Cost Fiscal Year | |||||||||
November 4, 2018 | October 29, 2017 | 2018 | 2017 | 2016 | ||||||
Defined benefit pension plans: | ||||||||||
Discount rate | 0.50%-8.00% | 0.50%-7.00% | 0.50%-7.00% | 0.50%-7.00% | 0.75%-7.75% | |||||
Average increase in compensation levels | 2.00%-10.00% | 2.00%-11.00% | 2.00%-11.00% | 2.00%-9.15% | 2.50%-11.72% | |||||
Expected long-term return on assets | N/A | N/A | 1.50%-7.50% | 0.25%-8.00% | 1.50%-9.00% |
Assumptions for Benefit Obligations as of | Assumptions for Net Periodic Benefit (Income) Cost Fiscal Year | |||||||||
November 4, 2018 | October 29, 2017 | 2018 | 2017 | 2016 | ||||||
Post-retirement benefits plans: | ||||||||||
Discount rate | 4.30%-4.60% | 3.40%-3.80% | 3.40%-3.80% | 3.30%-3.90% | 3.90%-4.50% | |||||
Average increase in compensation levels | 3.00% | 3.00% | 3.00% | 3.50% | 3.50% | |||||
Expected long-term return on assets | N/A | N/A | 4.80% | 4.40% | 5.10% |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Land | $ | 189 | $ | 177 | ||||
Construction in progress | 67 | 411 | ||||||
Buildings and leasehold improvements | 1,016 | 579 | ||||||
Machinery and equipment | 3,257 | 2,925 | ||||||
Total property, plant and equipment | 4,529 | 4,092 | ||||||
Accumulated depreciation and amortization | (1,894 | ) | (1,493 | ) | ||||
Total property, plant and equipment, net | $ | 2,635 | $ | 2,599 |
Fiscal Quarter Ended | ||||||||||||||||||||||||||||||||
November 4, 2018 (1) | August 5, 2018 (2) | May 6, 2018 (3) | February 4, 2018 (4) | October 29, 2017 (5) | July 30, 2017 (6) | April 30, 2017 (7) | January 29, 2017 (8) | |||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 5,444 | $ | 5,063 | $ | 5,014 | $ | 5,327 | $ | 4,844 | $ | 4,463 | $ | 4,190 | $ | 4,139 | ||||||||||||||||
Gross margin | 2,935 | 2,619 | 2,551 | 2,628 | 2,383 | 2,149 | 1,976 | 2,001 | ||||||||||||||||||||||||
Operating income | 1,652 | 1,339 | 1,201 | 943 | 755 | 648 | 474 | 506 | ||||||||||||||||||||||||
Income from continuing operations | 1,115 | 1,197 | 3,736 | 6,581 | 556 | 509 | 468 | 257 | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (1 | ) | (3 | ) | (15 | ) | 5 | (2 | ) | (4 | ) | (5 | ) | ||||||||||||||||||
Net income | 1,115 | 1,196 | 3,733 | 6,566 | 561 | 507 | 464 | 252 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interest | — | — | 15 | 336 | 29 | 26 | 24 | 13 | ||||||||||||||||||||||||
Net income attributable to common stock | $ | 1,115 | $ | 1,196 | $ | 3,718 | $ | 6,230 | $ | 532 | $ | 481 | $ | 440 | $ | 239 | ||||||||||||||||
Diluted income (loss) per share attributable to common stock: | ||||||||||||||||||||||||||||||||
Income per share from continuing operations | $ | 2.64 | $ | 2.71 | $ | 8.34 | $ | 14.66 | $ | 1.24 | $ | 1.14 | $ | 1.06 | $ | 0.58 | ||||||||||||||||
Income (loss) per share from discontinued operations, net of income taxes | — | — | (0.01 | ) | (0.04 | ) | 0.01 | — | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||
Net income per share | $ | 2.64 | $ | 2.71 | $ | 8.33 | $ | 14.62 | $ | 1.25 | $ | 1.14 | $ | 1.05 | $ | 0.57 | ||||||||||||||||
Dividends declared and paid per share | $ | 1.75 | $ | 1.75 | $ | 1.75 | $ | 1.75 | $ | 1.02 | $ | 1.02 | $ | 1.02 | $ | 1.02 | ||||||||||||||||
Dividends declared and paid per share-full year | $ | 7.00 | $ | 4.08 |
(1) | Includes amortization of acquisition-related intangible assets of $829 million and impairment on investment of $106 million. |
(2) | Includes amortization of acquisition-related intangible assets of $830 million. |
(3) | Includes amortization of acquisition-related intangible assets of $832 million. |
(4) | Includes the results of Brocade beginning with the fiscal quarter ended February 4, 2018 in connection with the completion of the Brocade Merger on November 17, 2017. Also includes amortization of acquisition-related intangible assets of $1,054 million, a purchase accounting effect on inventory charge of $70 million and restructuring, impairment and disposal charges of $145 million. |
(5) | Includes amortization of acquisition-related intangible assets of $1,099 million and $110 million of litigation settlement charges. |
(6) | Includes amortization of acquisition-related intangible assets of $1,096 million. |
(7) | Includes amortization of acquisition-related intangible assets of $1,081 million. |
(8) | Includes amortization of acquisition-related intangible assets of $999 million and a loss on debt extinguishment of $159 million. |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Total net revenue | $ | 664 | $ | 346 | $ | 335 | ||||||
Total costs and expenses including inventory purchases | $ | 109 | $ | 145 | $ | 81 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Total receivables | $ | — | $ | 31 | ||||
Total payables | $ | 11 | $ | 12 |
• | During fiscal year 2018, we initiated cost reduction activities associated with the Brocade Merger. As a result, we recognized $176 million of restructuring expense primarily related to employee termination costs. Approximately 1,200 employees were terminated from our workforce across all business and functional areas on a global basis as a result of the Brocade Merger during fiscal year 2018. |
• | During fiscal year 2016, we initiated cost reduction activities associated with the acquisition of BRCM. As a result, we recognized $50 million, $124 million and $447 million of restructuring expense in fiscal years 2018, 2017, and 2016 respectively. These restructuring expenses primarily related to lease and other exit costs for fiscal year 2018 and employee termination costs for fiscal years 2017 and 2016. |
Employee Termination Costs | Lease and Other Exit Costs | Total | ||||||||||
(In millions) | ||||||||||||
Balance as of November 2, 2015 | $ | 13 | $ | 13 | $ | 26 | ||||||
Liabilities assumed from BRCM | 2 | 13 | 15 | |||||||||
Restructuring charges | 445 | 37 | 482 | |||||||||
Utilization | (344 | ) | (28 | ) | (372 | ) | ||||||
Balance as of October 30, 2016 | 116 | 35 | 151 | |||||||||
Restructuring charges | 86 | 43 | 129 | |||||||||
Utilization | (174 | ) | (61 | ) | (235 | ) | ||||||
Balance as of October 29, 2017 | 28 | 17 | 45 | |||||||||
Restructuring charges (a) | 153 | 75 | 228 | |||||||||
Utilization | (165 | ) | (86 | ) | (251 | ) | ||||||
Balance as of November 4, 2018 (b) | $ | 16 | $ | 6 | $ | 22 |
(a) | Included $2 million, $5 million and $35 million of restructuring charges related to discontinued operations recognized during fiscal years 2018, 2017 and 2016, respectively, which was included in loss from discontinued operations in our consolidated statements of operations. |
(b) | The majority of the employee termination costs balance is expected to be paid during the first quarter of fiscal year 2019. The leases and other exit costs balance is expected to be paid by the end of fiscal year 2019. |
Pension Benefits | Post-Retirement Benefits | |||||||||||||||
November 4, 2018 | October 29, 2017 | November 4, 2018 | October 29, 2017 | |||||||||||||
(In millions) | ||||||||||||||||
Projected benefit obligations | $ | 551 | $ | 701 | $ | — | $ | — | ||||||||
Accumulated benefit obligations | $ | 546 | $ | 696 | $ | 14 | $ | 15 | ||||||||
Fair value of plan assets | $ | 528 | $ | 603 | $ | — | $ | — |
Fiscal Year | ||||||||
2018 | 2017 | |||||||
(In millions) | ||||||||
Beginning balance | $ | (91 | ) | $ | (134 | ) | ||
Changes in accumulated other comprehensive loss: | ||||||||
Unrealized gain (loss) on defined benefit pension plans and post-retirement benefit plans before reclassification | (11 | ) | 63 | |||||
Amounts reclassified out of accumulated other comprehensive loss (a) | 1 | 1 | ||||||
Tax effects | 2 | (21 | ) | |||||
Other comprehensive income (loss) | (8 | ) | 43 | |||||
Cumulative effect of accounting change | (16 | ) | — | |||||
Ending balance | $ | (115 | ) | $ | (91 | ) |
November 4, 2018 | ||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(In millions) | ||||||||||||||||||
Cash equivalents | $ | 36 | (a) | $ | — | $ | — | $ | 36 | |||||||||
Equity securities: | ||||||||||||||||||
Non-U.S. equity securities | 19 | (b) | — | — | 19 | |||||||||||||
Fixed-income securities: | ||||||||||||||||||
U.S. treasuries | — | 80 | (c) | — | 80 | |||||||||||||
Corporate bonds | — | 1,229 | (c) | — | 1,229 | |||||||||||||
Municipal bonds | — | 17 | (c) | — | 17 | |||||||||||||
Government bonds | — | 13 | (c) | — | 13 | |||||||||||||
Total plan assets | $ | 55 | $ | 1,339 | $ | — | $ | 1,394 |
October 29, 2017 | ||||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(In millions) | ||||||||||||||||||
Cash equivalents | $ | 943 | (a) | $ | — | $ | — | $ | 943 | |||||||||
Equity securities: | ||||||||||||||||||
Non-U.S. equity securities | 7 | (b) | — | — | 7 | |||||||||||||
Fixed-income securities: | ||||||||||||||||||
U.S. treasuries | — | 39 | (c) | — | 39 | |||||||||||||
Corporate bonds | — | 393 | (c) | — | 393 | |||||||||||||
Asset-backed and mortgage-backed securities | — | 1 | (c) | — | 1 | |||||||||||||
Municipal bonds | — | 25 | (c) | — | 25 | |||||||||||||
Government bonds | — | 18 | (c) | — | 18 | |||||||||||||
Total plan assets | $ | 950 | $ | 476 | $ | — | $ | 1,426 |
(a) | Cash equivalents primarily included short-term investment funds which consisted of short-term money market instruments that were valued based on quoted prices in active markets. |
(b) | These equity securities were valued based on quoted prices in active markets. |
(c) | These amounts consisted of investments that were traded less frequently than Level 1 securities and were valued using inputs that included quoted prices for similar assets in active markets and inputs other than quoted prices that were observable for the asset, such as interest rates, yield curves, prepayment speeds, collateral performance, broker/dealer quotes and indices that were observable at commonly quoted intervals. |
November 4, 2018 | October 29, 2017 | |||||||||||
Actual | Target | Actual | Target | |||||||||
Commingled funds - U.S. equities | — | % | — | % | 20 | % | 20 | % | ||||
Commingled funds - Non-U.S. equities | — | — | 20 | 20 | ||||||||
Commingled funds - bonds | 100 | 100 | 60 | 60 | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Assumptions for Benefit Obligations as of | Assumptions for Net Periodic Benefit (Income) Cost Fiscal Year | |||||||||
November 4, 2018 | October 29, 2017 | 2018 | 2017 | 2016 | ||||||
Defined benefit pension plans: | ||||||||||
Discount rate | 0.50%-8.00% | 0.50%-7.00% | 0.50%-7.00% | 0.50%-7.00% | 0.75%-7.75% | |||||
Average increase in compensation levels | 2.00%-10.00% | 2.00%-11.00% | 2.00%-11.00% | 2.00%-9.15% | 2.50%-11.72% | |||||
Expected long-term return on assets | N/A | N/A | 1.50%-7.50% | 0.25%-8.00% | 1.50%-9.00% |
Assumptions for Benefit Obligations as of | Assumptions for Net Periodic Benefit (Income) Cost Fiscal Year | |||||||||
November 4, 2018 | October 29, 2017 | 2018 | 2017 | 2016 | ||||||
Post-retirement benefits plans: | ||||||||||
Discount rate | 4.30%-4.60% | 3.40%-3.80% | 3.40%-3.80% | 3.30%-3.90% | 3.90%-4.50% | |||||
Average increase in compensation levels | 3.00% | 3.00% | 3.00% | 3.50% | 3.50% | |||||
Expected long-term return on assets | N/A | N/A | 4.80% | 4.40% | 5.10% |
(In millions) | ||||
Cash for outstanding BRCM common stock | $ | 16,798 | ||
Fair value of Broadcom common stock issued for outstanding BRCM common stock | 15,438 | |||
Fair value of Partnership LP units issued for outstanding BRCM common stock | 3,140 | |||
Fair value of partially vested assumed RSU awards | 182 | |||
Cash for vested BRCM equity awards | 137 | |||
Effective settlement of pre-existing relationships | 11 | |||
Total purchase consideration | 35,706 | |||
Less: cash acquired | 6,948 | |||
Total purchase consideration, net of cash acquired | $ | 28,758 |
(In millions) | ||||
Cash paid for outstanding Brocade common stock | $ | 5,298 | ||
Cash paid by Broadcom to retire Brocade’s term loan | 701 | |||
Cash paid for Brocade equity awards | 31 | |||
Fair value of partially vested assumed equity awards | 8 | |||
Total purchase consideration | 6,038 | |||
Less: cash acquired | 1,250 | |||
Total purchase consideration, net of cash acquired | $ | 4,788 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Current tax expense: | ||||||||||||
Domestic | $ | 293 | $ | 112 | $ | 59 | ||||||
Foreign | 171 | 158 | 165 | |||||||||
464 | 270 | 224 | ||||||||||
Deferred tax expense (benefit): | ||||||||||||
Domestic | (8,769 | ) | (1 | ) | 9 | |||||||
Foreign | 221 | (234 | ) | 409 | ||||||||
(8,548 | ) | (235 | ) | 418 | ||||||||
Total provision for (benefit from) income taxes | $ | (8,084 | ) | $ | 35 | $ | 642 |
Effective Interest Rate | November 4, 2018 | October 29, 2017 | |||||||||
(In millions) | |||||||||||
2017 Senior Notes | |||||||||||
2.375% notes due January 2020 | 2.615 | % | $ | 2,750 | $ | 2,750 | |||||
3.000% notes due January 2022 | 3.214 | % | 3,500 | 3,500 | |||||||
3.625% notes due January 2024 | 3.744 | % | 2,500 | 2,500 | |||||||
3.875% notes due January 2027 | 4.018 | % | 4,800 | 4,800 | |||||||
2.200% notes due January 2021 | 2.406 | % | 750 | 750 | |||||||
2.650% notes due January 2023 | 2.781 | % | 1,000 | 1,000 | |||||||
3.125% notes due January 2025 | 3.234 | % | 1,000 | 1,000 | |||||||
3.500% notes due January 2028 | 3.596 | % | 1,250 | 1,250 | |||||||
17,550 | 17,550 | ||||||||||
Assumed BRCM Senior Notes | |||||||||||
2.70% notes due November 2018 | 2.700 | % | — | 117 | |||||||
2.50% - 4.50% notes due August 2022 - August 2034 | 2.50% - 4.50% | 22 | 22 | ||||||||
22 | 139 | ||||||||||
Assumed Brocade Convertible Notes | |||||||||||
1.375% convertible notes due January 2020 | 0.628 | % | 37 | — | |||||||
Total principal amount outstanding | 17,609 | 17,689 | |||||||||
Less: Unaccreted discount and unamortized debt issuance costs | (116 | ) | (141 | ) | |||||||
Carrying value of debt | $ | 17,493 | $ | 17,548 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Other long-term assets | $ | 284 | $ | 21 | ||||
Other long-term liabilities | (169 | ) | (10,019 | ) | ||||
Net long-term income tax assets (liabilities) | $ | 115 | $ | (9,998 | ) |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Deferred income tax assets: | ||||||||
Depreciation and amortization | $ | 7 | $ | 8 | ||||
Employee benefits | 119 | 145 | ||||||
Employee stock awards | 159 | 180 | ||||||
Net operating loss carryovers and credit carryovers | 1,421 | 2,356 | ||||||
Other deferred income tax assets | 100 | 70 | ||||||
Gross deferred income tax assets | 1,806 | 2,759 | ||||||
Less valuation allowance | (1,347 | ) | (1,447 | ) | ||||
Deferred income tax assets | 459 | 1,312 | ||||||
Deferred income tax liabilities: | ||||||||
Depreciation and amortization | 316 | 96 | ||||||
Other deferred income tax liabilities | 12 | 12 | ||||||
Foreign earnings not indefinitely reinvested | 16 | 11,202 | ||||||
Deferred income tax liabilities | 344 | 11,310 | ||||||
Net deferred income tax assets (liabilities) | $ | 115 | $ | (9,998 | ) |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions, except per share data) | ||||||||||||
Numerator - Basic: | ||||||||||||
Income (loss) from continuing operations | $ | 12,629 | $ | 1,790 | $ | (1,749 | ) | |||||
Less: Income (loss) from continuing operations attributable to noncontrolling interest | 352 | 92 | (116 | ) | ||||||||
Income (loss) from continuing operations attributable to common stock | 12,277 | 1,698 | (1,633 | ) | ||||||||
Loss from discontinued operations, net of income taxes | (19 | ) | (6 | ) | (112 | ) | ||||||
Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest | (1 | ) | — | (6 | ) | |||||||
Loss from discontinued operations, net of income taxes, attributable to common stock | (18 | ) | (6 | ) | (106 | ) | ||||||
Net income (loss) attributable to common stock | $ | 12,259 | $ | 1,692 | $ | (1,739 | ) | |||||
Numerator - Diluted: | ||||||||||||
Income (loss) from continuing operations | $ | 12,277 | $ | 1,698 | $ | (1,749 | ) | |||||
Loss from discontinued operations, net of income taxes | (18 | ) | (6 | ) | (112 | ) | ||||||
Net income (loss) | $ | 12,259 | $ | 1,692 | $ | (1,861 | ) |
Denominator: | ||||||||||||
Weighted-average shares outstanding - basic | 418 | 405 | 366 | |||||||||
Dilutive effect of equity awards | 13 | 16 | — | |||||||||
Exchange of noncontrolling interest | — | — | 17 | |||||||||
Weighted-average shares outstanding - diluted | 431 | 421 | 383 | |||||||||
Basic income (loss) per share: | ||||||||||||
Income (loss) per share from continuing operations | $ | 29.37 | $ | 4.19 | $ | (4.46 | ) | |||||
Loss per share from discontinued operations | (0.04 | ) | (0.01 | ) | (0.29 | ) | ||||||
Net income (loss) per share | $ | 29.33 | $ | 4.18 | $ | (4.75 | ) | |||||
Diluted income (loss) per share: | ||||||||||||
Income (loss) per share from continuing operations | $ | 28.48 | $ | 4.03 | $ | (4.57 | ) | |||||
Loss per share from discontinued operations | (0.04 | ) | (0.01 | ) | (0.29 | ) | ||||||
Net income (loss) per share | $ | 28.44 | $ | 4.02 | $ | (4.86 | ) | |||||
Potentially dilutive shares excluded from the calculation of diluted income (loss) per share because their effect would have been antidilutive (a) | 9 | 22 | 12 |
Fiscal Year | |||||||||
2018 | 2017 | 2016 | |||||||
Statutory tax rate | 21.0 | % | 17.0 | % | 17.0 | % | |||
2017 Tax reform | (160.1 | ) | — | — | |||||
Withholding tax | (25.6 | ) | — | — | |||||
Foreign income taxed at different rates | (16.3 | ) | (0.8 | ) | (89.7 | ) | |||
Excess tax benefits from stock-based compensation | (4.0 | ) | — | — | |||||
Research and development credit | (2.9 | ) | — | — | |||||
Deemed inclusion of foreign earnings | 4.7 | — | — | ||||||
Tax holidays and concessions | — | (13.0 | ) | 15.3 | |||||
Other, net | 5.3 | (1.3 | ) | (0.6 | ) | ||||
Actual tax rate on income (loss) before income taxes | (177.9 | )% | 1.9 | % | (58.0 | )% |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Cost of products sold | $ | 86 | $ | 64 | $ | 48 | ||||||
Research and development | 855 | 636 | 430 | |||||||||
Selling, general and administrative | 286 | 220 | 186 | |||||||||
Total stock-based compensation expense (a) | $ | 1,227 | $ | 920 | $ | 664 | ||||||
Income tax benefits for stock-based compensation | $ | 181 | $ | 273 | $ | 89 |
Fiscal Years: | Pension Benefits | Post-Retirement Benefits | ||||||
(In millions) | ||||||||
2019 | $ | 93 | $ | 3 | ||||
2020 | $ | 91 | $ | 3 | ||||
2021 | $ | 91 | $ | 3 | ||||
2022 | $ | 91 | $ | 3 | ||||
2023 | $ | 91 | $ | 4 | ||||
2024-2028 | $ | 445 | $ | 20 |
Amortizable intangible assets: | November 4, 2018 | October 29, 2017 | ||
(In years) | ||||
Purchased technology | 6 | 5 | ||
Customer contracts and related relationships | 5 | 4 | ||
Trade names | 12 | 13 | ||
Other | 10 | 10 |
Wired Infrastructure | Wireless Communications | Enterprise Storage | Industrial & Other | Total | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Balance as of October 30, 2016 | $ | 17,641 | $ | 5,952 | $ | 995 | $ | 144 | $ | 24,732 | ||||||||||
Broadcom Merger adjustments | (25 | ) | (7 | ) | — | — | (32 | ) | ||||||||||||
Acquisitions | 6 | — | — | — | 6 | |||||||||||||||
Balance as of October 29, 2017 | 17,622 | 5,945 | 995 | 144 | 24,706 | |||||||||||||||
Acquisitions | 83 | — | 2,117 | 7 | 2,207 | |||||||||||||||
Balance as of November 4, 2018 | $ | 17,705 | $ | 5,945 | $ | 3,112 | $ | 151 | $ | 26,913 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Domestic income (loss) | $ | (705 | ) | $ | 2,102 | $ | 1,365 | |||||
Foreign income (loss) | 5,250 | (277 | ) | (2,472 | ) | |||||||
Income (loss) from continuing operations before income taxes | $ | 4,545 | $ | 1,825 | $ | (1,107 | ) |
Description | IPR&D | Percentage of Completion | Estimated Cost to Complete | Expected Release Date (By Fiscal Year) | |||||||||
(Dollars in millions) | |||||||||||||
Directors | $ | 64 | 72 | % | $ | 45 | 2019 | ||||||
Switches | $ | 50 | 81 | % | $ | 21 | 2018 | ||||||
Embedded | $ | 31 | 74 | % | $ | 22 | 2019 | ||||||
Networking software | $ | 10 | 73 | % | $ | 27 | 2018 |
Description | IPR&D | Percentage of Completion | Estimated Cost to Complete | Expected Release Date (By Fiscal Year) | |||||||||
(Dollars in millions) | |||||||||||||
Set-top box solutions | $ | 90 | 56 | % | $ | 90 | 2016 - 2017 | ||||||
Broadband carrier access solutions | $ | 390 | 34 | % | $ | 376 | 2016 - 2018 | ||||||
Carrier switch solutions | $ | 270 | 51 | % | $ | 255 | 2016 - 2019 | ||||||
Compute and connectivity solutions | $ | 170 | 61 | % | $ | 136 | 2016 - 2018 | ||||||
Physical layer product solutions | $ | 190 | 51 | % | $ | 71 | 2016 - 2019 | ||||||
Wireless connectivity combo solutions | $ | 770 | 57 | % | $ | 364 | 2016 - 2018 | ||||||
Touch controllers | $ | 70 | 39 | % | $ | 21 | 2016 - 2017 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Finished goods | $ | 483 | $ | 562 | ||||
Work-in-process | 505 | 696 | ||||||
Raw materials | 136 | 189 | ||||||
Total inventory | $ | 1,124 | $ | 1,447 |
Fiscal Year: | Future Scheduled Principal Payments | |||
(In millions) | ||||
2019 | $ | — | ||
2020 | 2,787 | |||
2021 | 750 | |||
2022 | 3,509 | |||
2023 | 1,000 | |||
Thereafter | 9,563 | |||
Total | $ | 17,609 |
Pension Benefits | Post-Retirement Benefits | |||||||||||||||||||||||
Fiscal Year | Fiscal Year | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2018 | 2017 | 2016 | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Service cost | $ | 4 | $ | 4 | $ | 3 | $ | — | $ | — | $ | — | ||||||||||||
Interest cost | 51 | 53 | 59 | 3 | 3 | 3 | ||||||||||||||||||
Expected return on plan assets | (51 | ) | (65 | ) | (72 | ) | (4 | ) | (4 | ) | (4 | ) | ||||||||||||
Other | 1 | 1 | 4 | — | — | — | ||||||||||||||||||
Net periodic benefit (income) cost | $ | 5 | $ | (7 | ) | $ | (6 | ) | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | |||||||
Net actuarial (gain) loss | $ | 14 | $ | (60 | ) | $ | 88 | $ | (3 | ) | $ | (3 | ) | $ | 11 |
Pension Benefits | Post-Retirement Benefits | |||||||||||||||
November 4, 2018 | October 29, 2017 | November 4, 2018 | October 29, 2017 | |||||||||||||
(In millions) | ||||||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of plan assets — beginning of period | $ | 1,426 | $ | 1,050 | $ | 83 | $ | 78 | ||||||||
Actual return on plan assets | (65 | ) | 108 | — | 7 | |||||||||||
Employer contributions | 130 | 361 | — | — | ||||||||||||
Payments from plan assets | (93 | ) | (93 | ) | (2 | ) | (2 | ) | ||||||||
Foreign currency impact | (4 | ) | — | — | — | |||||||||||
Fair value of plan assets — end of period | 1,394 | 1,426 | 81 | 83 | ||||||||||||
Change in benefit obligations: | ||||||||||||||||
Benefit obligations — beginning of period | 1,508 | 1,566 | 80 | 79 | ||||||||||||
Service cost | 4 | 4 | — | — | ||||||||||||
Interest cost | 51 | 53 | 3 | 3 | ||||||||||||
Actuarial gain | (102 | ) | (13 | ) | (7 | ) | — | |||||||||
Benefit payments | (93 | ) | (93 | ) | (2 | ) | (2 | ) | ||||||||
Curtailments | — | (4 | ) | — | — | |||||||||||
Settlements | — | (8 | ) | — | — | |||||||||||
Plan amendment | 3 | — | — | — | ||||||||||||
Foreign currency impact | (7 | ) | 3 | — | — | |||||||||||
Benefit obligations — end of period | 1,364 | 1,508 | 74 | 80 | ||||||||||||
Overfunded (underfunded) status of benefit obligations (a) | $ | 30 | $ | (82 | ) | $ | 7 | $ | 3 | |||||||
Actuarial losses and prior service costs recognized in accumulated other comprehensive loss, net of taxes | $ | (110 | ) | $ | (85 | ) | $ | (5 | ) | $ | (6 | ) |
(a) | Substantially all amounts recognized in the consolidated balance sheets were recorded in other long-term assets and other long-term liabilities for all periods presented. |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Prepaid expenses | $ | 243 | $ | 440 | ||||
Other receivables | 65 | 155 | ||||||
Other (miscellaneous) | 58 | 129 | ||||||
Total other current assets | $ | 366 | $ | 724 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Other income | $ | 30 | $ | 43 | $ | 27 | ||||||
Interest income | 114 | 44 | 10 | |||||||||
Other expense | — | (25 | ) | (27 | ) | |||||||
Other income, net | $ | 144 | $ | 62 | $ | 10 |
Fiscal Quarter Ended | ||||||||||||||||||||||||||||||||
November 4, 2018 (1) | August 5, 2018 (2) | May 6, 2018 (3) | February 4, 2018 (4) | October 29, 2017 (5) | July 30, 2017 (6) | April 30, 2017 (7) | January 29, 2017 (8) | |||||||||||||||||||||||||
(In millions, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 5,444 | $ | 5,063 | $ | 5,014 | $ | 5,327 | $ | 4,844 | $ | 4,463 | $ | 4,190 | $ | 4,139 | ||||||||||||||||
Gross margin | 2,935 | 2,619 | 2,551 | 2,628 | 2,383 | 2,149 | 1,976 | 2,001 | ||||||||||||||||||||||||
Operating income | 1,652 | 1,339 | 1,201 | 943 | 755 | 648 | 474 | 506 | ||||||||||||||||||||||||
Income from continuing operations | 1,115 | 1,197 | 3,736 | 6,581 | 556 | 509 | 468 | 257 | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes | — | (1 | ) | (3 | ) | (15 | ) | 5 | (2 | ) | (4 | ) | (5 | ) | ||||||||||||||||||
Net income | 1,115 | 1,196 | 3,733 | 6,566 | 561 | 507 | 464 | 252 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interest | — | — | 15 | 336 | 29 | 26 | 24 | 13 | ||||||||||||||||||||||||
Net income attributable to common stock | $ | 1,115 | $ | 1,196 | $ | 3,718 | $ | 6,230 | $ | 532 | $ | 481 | $ | 440 | $ | 239 | ||||||||||||||||
Diluted income (loss) per share attributable to common stock: | ||||||||||||||||||||||||||||||||
Income per share from continuing operations | $ | 2.64 | $ | 2.71 | $ | 8.34 | $ | 14.66 | $ | 1.24 | $ | 1.14 | $ | 1.06 | $ | 0.58 | ||||||||||||||||
Income (loss) per share from discontinued operations, net of income taxes | — | — | (0.01 | ) | (0.04 | ) | 0.01 | — | (0.01 | ) | (0.01 | ) | ||||||||||||||||||||
Net income per share | $ | 2.64 | $ | 2.71 | $ | 8.33 | $ | 14.62 | $ | 1.25 | $ | 1.14 | $ | 1.05 | $ | 0.57 | ||||||||||||||||
Dividends declared and paid per share | $ | 1.75 | $ | 1.75 | $ | 1.75 | $ | 1.75 | $ | 1.02 | $ | 1.02 | $ | 1.02 | $ | 1.02 | ||||||||||||||||
Dividends declared and paid per share-full year | $ | 7.00 | $ | 4.08 |
Estimated Fair Value | ||||
(In millions) | ||||
Current assets | $ | 1,297 | ||
Goodwill | 2,187 | |||
Intangible assets | 3,396 | |||
Other long-term assets | 82 | |||
Total assets acquired | 6,962 | |||
Current portion of long-term debt | (856 | ) | ||
Other current liabilities | (374 | ) | ||
Long-term debt | (38 | ) | ||
Other long-term liabilities | (906 | ) | ||
Total liabilities assumed | (2,174 | ) | ||
Fair value of net assets acquired | $ | 4,788 |
Fair Value | ||||
(In millions) | ||||
Trade accounts receivable | $ | 669 | ||
Inventory | 1,853 | |||
Assets held-for-sale | 833 | |||
Other current assets | 194 | |||
Property, plant and equipment | 889 | |||
Goodwill | 22,992 | |||
Intangible assets | 14,808 | |||
Other long-term assets | 121 | |||
Total assets acquired | 42,359 | |||
Accounts payable | (559 | ) | ||
Employee compensation and benefits | (104 | ) | ||
Current portion of long-term debt | (1,475 | ) | ||
Other current liabilities | (780 | ) | ||
Long-term debt | (139 | ) | ||
Other long-term liabilities | (10,544 | ) | ||
Total liabilities assumed | (13,601 | ) | ||
Fair value of net assets acquired | $ | 28,758 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Total net revenue | $ | 664 | $ | 346 | $ | 335 | ||||||
Total costs and expenses including inventory purchases | $ | 109 | $ | 145 | $ | 81 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Total receivables | $ | — | $ | 31 | ||||
Total payables | $ | 11 | $ | 12 |
Employee Termination Costs | Lease and Other Exit Costs | Total | ||||||||||
(In millions) | ||||||||||||
Balance as of November 2, 2015 | $ | 13 | $ | 13 | $ | 26 | ||||||
Liabilities assumed from BRCM | 2 | 13 | 15 | |||||||||
Restructuring charges | 445 | 37 | 482 | |||||||||
Utilization | (344 | ) | (28 | ) | (372 | ) | ||||||
Balance as of October 30, 2016 | 116 | 35 | 151 | |||||||||
Restructuring charges | 86 | 43 | 129 | |||||||||
Utilization | (174 | ) | (61 | ) | (235 | ) | ||||||
Balance as of October 29, 2017 | 28 | 17 | 45 | |||||||||
Restructuring charges (a) | 153 | 75 | 228 | |||||||||
Utilization | (165 | ) | (86 | ) | (251 | ) | ||||||
Balance as of November 4, 2018 (b) | $ | 16 | $ | 6 | $ | 22 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Net revenue: | ||||||||||||
China | $ | 10,305 | $ | 9,460 | $ | 7,184 | ||||||
United States | 2,697 | 1,266 | 1,124 | |||||||||
Other | 7,846 | 6,910 | 4,932 | |||||||||
$ | 20,848 | $ | 17,636 | $ | 13,240 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Net revenue: | ||||||||||||
Wired infrastructure | $ | 8,674 | $ | 8,549 | $ | 6,582 | ||||||
Wireless communications | 6,490 | 5,404 | 3,724 | |||||||||
Enterprise storage | 4,673 | 2,799 | 2,291 | |||||||||
Industrial & other | 1,011 | 884 | 643 | |||||||||
Total net revenue | $ | 20,848 | $ | 17,636 | $ | 13,240 | ||||||
Operating income (loss): | ||||||||||||
Wired infrastructure | $ | 4,093 | $ | 3,853 | $ | 2,664 | ||||||
Wireless communications | 2,840 | 2,155 | 1,282 | |||||||||
Enterprise storage | 2,906 | 1,527 | 995 | |||||||||
Industrial & other | 571 | 447 | 327 | |||||||||
Unallocated expenses | (5,275 | ) | (5,599 | ) | (5,677 | ) | ||||||
Total operating income (loss) | $ | 5,135 | $ | 2,383 | $ | (409 | ) |
Number of RSUs Outstanding | Weighted-Average Grant Date Fair Value Per Share | ||||||
(In millions, except per share data) | |||||||
Balance as of November 1, 2015 | 5 | $ | 95.17 | ||||
Assumed in Broadcom Merger | 6 | $ | 135.58 | ||||
Granted | 12 | $ | 138.45 | ||||
Vested | (4 | ) | $ | 114.49 | |||
Forfeited | (2 | ) | $ | 130.30 | |||
Balance as of October 30, 2016 | 17 | $ | 130.71 | ||||
Granted | 8 | $ | 199.33 | ||||
Vested | (5 | ) | $ | 126.81 | |||
Forfeited | (2 | ) | $ | 142.78 | |||
Balance as of October 29, 2017 | 18 | $ | 163.42 | ||||
Granted | 7 | $ | 239.48 | ||||
Vested | (6 | ) | $ | 155.78 | |||
Forfeited | (1 | ) | $ | 175.46 | |||
Balance as of November 4, 2018 | 18 | $ | 195.50 |
Number of Options Outstanding | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Life (In years) | Aggregate Intrinsic Value | ||||||||||
(In millions, except years and per share data) | |||||||||||||
Balance as of November 1, 2015 | 21 | $ | 47.92 | ||||||||||
Exercised | (5 | ) | $ | 44.35 | $ | 579 | |||||||
Cancelled | (1 | ) | $ | 53.56 | |||||||||
Balance as of October 30, 2016 | 15 | $ | 48.77 | ||||||||||
Exercised | (4 | ) | $ | 45.48 | $ | 682 | |||||||
Cancelled | (1 | ) | $ | 66.08 | |||||||||
Balance as of October 29, 2017 | 10 | $ | 49.54 | ||||||||||
Exercised | (2 | ) | $ | 47.41 | $ | 534 | |||||||
Cancelled | — | * | $ | 72.37 | |||||||||
Balance as of November 4, 2018 | 8 | $ | 50.14 | 1.96 | $ | 1,316 | |||||||
Fully vested as of November 4, 2018 | 8 | $ | 49.97 | 1.95 | $ | 1,313 | |||||||
Fully vested and expected to vest as of November 4, 2018 | 8 | $ | 50.14 | 1.96 | $ | 1,316 |
Fiscal Year: | Expected Amortization Expense | |||
(In millions) | ||||
2019 | $ | 2,882 | ||
2020 | 2,437 | |||
2021 | 1,945 | |||
2022 | 1,441 | |||
2023 | 650 | |||
Thereafter | 1,143 | |||
Total | $ | 10,498 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Net revenue: | ||||||||||||
Wired infrastructure | $ | 8,674 | $ | 8,549 | $ | 6,582 | ||||||
Wireless communications | 6,490 | 5,404 | 3,724 | |||||||||
Enterprise storage | 4,673 | 2,799 | 2,291 | |||||||||
Industrial & other | 1,011 | 884 | 643 | |||||||||
Total net revenue | $ | 20,848 | $ | 17,636 | $ | 13,240 | ||||||
Operating income (loss): | ||||||||||||
Wired infrastructure | $ | 4,093 | $ | 3,853 | $ | 2,664 | ||||||
Wireless communications | 2,840 | 2,155 | 1,282 | |||||||||
Enterprise storage | 2,906 | 1,527 | 995 | |||||||||
Industrial & other | 571 | 447 | 327 | |||||||||
Unallocated expenses | (5,275 | ) | (5,599 | ) | (5,677 | ) | ||||||
Total operating income (loss) | $ | 5,135 | $ | 2,383 | $ | (409 | ) |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Net revenue: | ||||||||||||
China | $ | 10,305 | $ | 9,460 | $ | 7,184 | ||||||
United States | 2,697 | 1,266 | 1,124 | |||||||||
Other | 7,846 | 6,910 | 4,932 | |||||||||
$ | 20,848 | $ | 17,636 | $ | 13,240 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Long-lived assets: | ||||||||
United States | $ | 1,859 | $ | 1,822 | ||||
Taiwan | 264 | 268 | ||||||
Other | 512 | 509 | ||||||
$ | 2,635 | $ | 2,599 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions, except per share data) | ||||||||||||
Cash dividends and distributions declared and paid per share/unit | $ | 7.00 | $ | 4.08 | $ | 1.94 | ||||||
Cash dividends paid to stockholders | $ | 2,921 | $ | 1,653 | $ | 716 | ||||||
Cash distributions paid to limited partners | $ | 77 | $ | 92 | $ | 34 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Cost of products sold | $ | 86 | $ | 64 | $ | 48 | ||||||
Research and development | 855 | 636 | 430 | |||||||||
Selling, general and administrative | 286 | 220 | 186 | |||||||||
Total stock-based compensation expense (a) | $ | 1,227 | $ | 920 | $ | 664 | ||||||
Income tax benefits for stock-based compensation | $ | 181 | $ | 273 | $ | 89 |
(a) | Does not include stock-based compensation related to discontinued operations recognized during fiscal years 2017 and 2016, which was included in loss from discontinued operations, net of income taxes in our consolidated statements of operations. |
Market-Based Awards | |||||||||
Fiscal Year | |||||||||
2018 | 2017 | 2016 | |||||||
Risk-free interest rate | 2.4 | % | 1.7 | % | 1.2 | % | |||
Dividend yield | 2.6 | % | 1.8 | % | 1.3 | % | |||
Volatility | 32.5 | % | 32.3 | % | 35.0 | % | |||
Expected term (in years) | 4.0 | 4.0 | 3.8 |
Number of RSUs Outstanding | Weighted-Average Grant Date Fair Value Per Share | ||||||
(In millions, except per share data) | |||||||
Balance as of November 1, 2015 | 5 | $ | 95.17 | ||||
Assumed in Broadcom Merger | 6 | $ | 135.58 | ||||
Granted | 12 | $ | 138.45 | ||||
Vested | (4 | ) | $ | 114.49 | |||
Forfeited | (2 | ) | $ | 130.30 | |||
Balance as of October 30, 2016 | 17 | $ | 130.71 | ||||
Granted | 8 | $ | 199.33 | ||||
Vested | (5 | ) | $ | 126.81 | |||
Forfeited | (2 | ) | $ | 142.78 | |||
Balance as of October 29, 2017 | 18 | $ | 163.42 | ||||
Granted | 7 | $ | 239.48 | ||||
Vested | (6 | ) | $ | 155.78 | |||
Forfeited | (1 | ) | $ | 175.46 | |||
Balance as of November 4, 2018 | 18 | $ | 195.50 |
Number of Options Outstanding | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Life (In years) | Aggregate Intrinsic Value | ||||||||||
(In millions, except years and per share data) | |||||||||||||
Balance as of November 1, 2015 | 21 | $ | 47.92 | ||||||||||
Exercised | (5 | ) | $ | 44.35 | $ | 579 | |||||||
Cancelled | (1 | ) | $ | 53.56 | |||||||||
Balance as of October 30, 2016 | 15 | $ | 48.77 | ||||||||||
Exercised | (4 | ) | $ | 45.48 | $ | 682 | |||||||
Cancelled | (1 | ) | $ | 66.08 | |||||||||
Balance as of October 29, 2017 | 10 | $ | 49.54 | ||||||||||
Exercised | (2 | ) | $ | 47.41 | $ | 534 | |||||||
Cancelled | — | * | $ | 72.37 | |||||||||
Balance as of November 4, 2018 | 8 | $ | 50.14 | 1.96 | $ | 1,316 | |||||||
Fully vested as of November 4, 2018 | 8 | $ | 49.97 | 1.95 | $ | 1,313 | |||||||
Fully vested and expected to vest as of November 4, 2018 | 8 | $ | 50.14 | 1.96 | $ | 1,316 |
(In millions) | ||||
Cash paid for outstanding CA common stock | $ | 18,402 | ||
Cash paid by Broadcom to retire CA’s term loan | 274 | |||
Cash paid for vested CA equity awards | 77 | |||
Fair value of partially vested assumed equity awards | 91 | |||
Total purchase consideration | $ | 18,844 |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Beginning balance | $ | 2,256 | $ | 1,983 | $ | 578 | ||||||
Lapse of statute of limitations | (20 | ) | (12 | ) | (8 | ) | ||||||
Increases in balances related to tax positions taken during prior periods (including those related to acquisitions made during the year) | 361 | 47 | 1,325 | |||||||||
Decreases in balances related to tax positions taken during prior periods | (289 | ) | (32 | ) | (1 | ) | ||||||
Increases in balances related to tax positions taken during current period | 1,726 | 391 | 138 | |||||||||
Decreases in balances related to settlement with taxing authorities | (4 | ) | (121 | ) | (49 | ) | ||||||
Ending balance | $ | 4,030 | $ | 2,256 | $ | 1,983 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Finished goods | $ | 483 | $ | 562 | ||||
Work-in-process | 505 | 696 | ||||||
Raw materials | 136 | 189 | ||||||
Total inventory | $ | 1,124 | $ | 1,447 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Land | $ | 189 | $ | 177 | ||||
Construction in progress | 67 | 411 | ||||||
Buildings and leasehold improvements | 1,016 | 579 | ||||||
Machinery and equipment | 3,257 | 2,925 | ||||||
Total property, plant and equipment | 4,529 | 4,092 | ||||||
Accumulated depreciation and amortization | (1,894 | ) | (1,493 | ) | ||||
Total property, plant and equipment, net | $ | 2,635 | $ | 2,599 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Prepaid expenses | $ | 243 | $ | 440 | ||||
Other receivables | 65 | 155 | ||||||
Other (miscellaneous) | 58 | 129 | ||||||
Total other current assets | $ | 366 | $ | 724 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Interest payable | $ | 165 | $ | 136 | ||||
Deferred revenue | 164 | 51 | ||||||
Accrued rebates | 161 | 124 | ||||||
Tax liabilities | 162 | 123 | ||||||
Other (miscellaneous) | 160 | 247 | ||||||
Total other current liabilities | $ | 812 | $ | 681 |
November 4, 2018 | October 29, 2017 | |||||||
(In millions) | ||||||||
Unrecognized tax benefits (a) (b) | $ | 3,088 | $ | 1,011 | ||||
Deferred tax liabilities (a) | 169 | 10,019 | ||||||
Tax indemnification liability | 116 | — | ||||||
Other (miscellaneous) | 263 | 242 | ||||||
Total other long-term liabilities | $ | 3,636 | $ | 11,272 |
Fiscal Year | ||||||||
2018 | 2017 | |||||||
(In millions) | ||||||||
Beginning balance | $ | (91 | ) | $ | (134 | ) | ||
Changes in accumulated other comprehensive loss: | ||||||||
Unrealized gain (loss) on defined benefit pension plans and post-retirement benefit plans before reclassification | (11 | ) | 63 | |||||
Amounts reclassified out of accumulated other comprehensive loss (a) | 1 | 1 | ||||||
Tax effects | 2 | (21 | ) | |||||
Other comprehensive income (loss) | (8 | ) | 43 | |||||
Cumulative effect of accounting change | (16 | ) | — | |||||
Ending balance | $ | (115 | ) | $ | (91 | ) |
Fiscal Year | ||||||||||||
2018 | 2017 | 2016 | ||||||||||
(In millions) | ||||||||||||
Other income | $ | 30 | $ | 43 | $ | 27 | ||||||
Interest income | 114 | 44 | 10 | |||||||||
Other expense | — | (25 | ) | (27 | ) | |||||||
Other income, net | $ | 144 | $ | 62 | $ | 10 |