þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
State or Other Jurisdiction of Incorporation or Organization | Exact Name of Registrant as Specified in Its Charter Address of Principal Executive Offices Registrant’s telephone number, including area code | Commission File Number | IRS Employer Identification No. | |||
Singapore | Broadcom Limited | 001-37690 | 98-1254807 | |||
1 Yishun Avenue 7 Singapore 768923 | ||||||
(65) 6755-7888 | ||||||
Cayman Islands | Broadcom Cayman L.P. | 333-2025938 | 98-1254815 | |||
c/o Broadcom Limited 1 Yishun Avenue 7 Singapore 768923 | ||||||
(65) 6755-7888 |
Broadcom Limited: | Large accelerated filer þ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
Broadcom Cayman L.P.: | Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer þ | Smaller reporting company ¨ |
(Do not check if a smaller reporting company) |
Page | |
Page | |
Financial Statements of Broadcom Limited: | |
Financial Statements of Broadcom Cayman L.P.: | |
January 29, 2017 | October 30, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,536 | $ | 3,097 | ||||
Trade accounts receivable, net | 1,947 | 2,181 | ||||||
Inventory | 1,336 | 1,400 | ||||||
Other current assets | 531 | 447 | ||||||
Total current assets | 7,350 | 7,125 | ||||||
Long-term assets: | ||||||||
Property, plant and equipment, net | 2,646 | 2,509 | ||||||
Goodwill | 24,700 | 24,732 | ||||||
Intangible assets, net | 14,067 | 15,068 | ||||||
Other long-term assets | 854 | 532 | ||||||
Total assets | $ | 49,617 | $ | 49,966 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,047 | $ | 1,261 | ||||
Employee compensation and benefits | 336 | 517 | ||||||
Current portion of long-term debt | — | 454 | ||||||
Other current liabilities | 739 | 846 | ||||||
Total current liabilities | 2,122 | 3,078 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 13,562 | 13,188 | ||||||
Pension and post-retirement benefit obligations | 518 | 531 | ||||||
Other long-term liabilities | 11,405 | 11,293 | ||||||
Total liabilities | 27,607 | 28,090 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Shareholders’ equity: | ||||||||
Ordinary shares, no par value; 400,292,144 shares and 398,281,461 shares issued and outstanding on January 29, 2017 and October 30, 2016, respectively | 19,504 | 19,241 | ||||||
Non-economic voting preference shares, no par value; 22,804,591 shares issued and outstanding on January 29, 2017 and October 30, 2016 | — | — | ||||||
Accumulated deficit | (337 | ) | (215 | ) | ||||
Accumulated other comprehensive loss | (134 | ) | (134 | ) | ||||
Total Broadcom Limited shareholders’ equity | 19,033 | 18,892 | ||||||
Noncontrolling interest | 2,977 | 2,984 | ||||||
Total shareholders’ equity | 22,010 | 21,876 | ||||||
Total liabilities and shareholders’ equity | $ | 49,617 | $ | 49,966 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Net revenue | $ | 4,139 | $ | 1,771 | ||||
Cost of products sold: | ||||||||
Cost of products sold | 1,573 | 699 | ||||||
Amortization of acquisition-related intangible assets | 559 | 130 | ||||||
Restructuring charges | 6 | 1 | ||||||
Total cost of products sold | 2,138 | 830 | ||||||
Gross margin | 2,001 | 941 | ||||||
Research and development | 808 | 267 | ||||||
Selling, general and administrative | 201 | 114 | ||||||
Amortization of acquisition-related intangible assets | 440 | 54 | ||||||
Restructuring, impairment and disposal charges | 46 | 31 | ||||||
Total operating expenses | 1,495 | 466 | ||||||
Operating income | 506 | 475 | ||||||
Interest expense | (111 | ) | (84 | ) | ||||
Loss on extinguishment of debt | (159 | ) | — | |||||
Other income, net | 31 | 3 | ||||||
Income from continuing operations before income taxes | 267 | 394 | ||||||
Provision for income taxes | 10 | 17 | ||||||
Income from continuing operations | 257 | 377 | ||||||
Loss from discontinued operations, net of income taxes | (5 | ) | — | |||||
Net income | 252 | 377 | ||||||
Net income attributable to noncontrolling interest | 13 | — | ||||||
Net income attributable to ordinary shares | $ | 239 | $ | 377 | ||||
Basic income per share attributable to ordinary shares: | ||||||||
Income per share from continuing operations | $ | 0.61 | $ | 1.36 | ||||
Loss per share from discontinued operations | (0.01 | ) | — | |||||
Net income per share | $ | 0.60 | $ | 1.36 | ||||
Diluted income per share attributable to ordinary shares: | ||||||||
Income per share from continuing operations | $ | 0.58 | $ | 1.30 | ||||
Loss per share from discontinued operations | (0.01 | ) | — | |||||
Net income per share | $ | 0.57 | $ | 1.30 | ||||
Weighted-average shares: | ||||||||
Basic | 399 | 277 | ||||||
Diluted | 439 | 289 | ||||||
Cash dividends declared and paid per share | $ | 1.02 | $ | 0.44 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Net income | $ | 252 | $ | 377 | ||||
Other comprehensive income, net of tax: | ||||||||
Other comprehensive income | — | — | ||||||
Comprehensive income | 252 | 377 | ||||||
Comprehensive income attributable to noncontrolling interest | 13 | — | ||||||
Comprehensive income attributable to ordinary shares | $ | 239 | $ | 377 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 252 | $ | 377 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,114 | 244 | ||||||
Share-based compensation | 202 | 57 | ||||||
Excess tax benefits from share-based compensation | — | (23 | ) | |||||
Non-cash portion of debt extinguishment loss | 159 | — | ||||||
Deferred taxes and other non-cash tax expense | (25 | ) | (8 | ) | ||||
Gain on disposition of assets | (23 | ) | — | |||||
Non-cash restructuring, impairment and disposal charges | 17 | 22 | ||||||
Amortization of debt issuance costs and accretion of debt discount | 8 | 4 | ||||||
Other | 5 | 4 | ||||||
Changes in assets and liabilities, net of acquisitions and disposals: | ||||||||
Trade accounts receivable, net | 234 | (41 | ) | |||||
Inventory | 65 | 34 | ||||||
Accounts payable | (137 | ) | (68 | ) | ||||
Employee compensation and benefits | (181 | ) | (149 | ) | ||||
Other current assets and current liabilities | (237 | ) | 16 | |||||
Other long-term assets and long-term liabilities | (100 | ) | 5 | |||||
Net cash provided by operating activities | 1,353 | 474 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (325 | ) | (140 | ) | ||||
Proceeds from sales of businesses | 10 | 68 | ||||||
Other | (4 | ) | (13 | ) | ||||
Net cash used in investing activities | (319 | ) | (85 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | 13,550 | — | ||||||
Debt repayments | (13,668 | ) | (11 | ) | ||||
Debt issuance costs | (107 | ) | (4 | ) | ||||
Dividend and distribution payments | (431 | ) | (122 | ) | ||||
Issuance of ordinary shares | 61 | 72 | ||||||
Excess tax benefits from share-based compensation | — | 23 | ||||||
Net cash used in financing activities | (595 | ) | (42 | ) | ||||
Net change in cash and cash equivalents | 439 | 347 | ||||||
Cash and cash equivalents at the beginning of period | 3,097 | 1,822 | ||||||
Cash and cash equivalents at end of period | $ | 3,536 | $ | 2,169 |
January 29, 2017 | October 30, 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 3,393 | $ | 3,044 | ||||
Trade accounts receivable, net | 1,947 | 2,181 | ||||||
Inventory | 1,336 | 1,400 | ||||||
Other current assets | 674 | 500 | ||||||
Total current assets | 7,350 | 7,125 | ||||||
Long-term assets: | ||||||||
Property, plant and equipment, net | 2,646 | 2,509 | ||||||
Goodwill | 24,700 | 24,732 | ||||||
Intangible assets, net | 14,067 | 15,068 | ||||||
Other long-term assets | 854 | 532 | ||||||
Total assets | $ | 49,617 | $ | 49,966 | ||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,047 | $ | 1,261 | ||||
Employee compensation and benefits | 336 | 517 | ||||||
Current portion of long-term debt | — | 454 | ||||||
Other current liabilities | 739 | 846 | ||||||
Total current liabilities | 2,122 | 3,078 | ||||||
Long-term liabilities: | ||||||||
Long-term debt | 13,562 | 13,188 | ||||||
Pension and post-retirement benefit obligations | 518 | 531 | ||||||
Other long-term liabilities | 11,405 | 11,293 | ||||||
Total liabilities | 27,607 | 28,090 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Partners’ capital: | ||||||||
Common partnership units; 390,237,855 units issued and outstanding on January 29, 2017 and October 30, 2016 | 19,167 | 19,026 | ||||||
Restricted exchangeable units; 22,804,591 units issued and outstanding on January 29, 2017 and October 30, 2016 | 2,977 | 2,984 | ||||||
Accumulated other comprehensive loss | (134 | ) | (134 | ) | ||||
Total partners’ capital | 22,010 | 21,876 | ||||||
Total liabilities and partners’ capital | $ | 49,617 | $ | 49,966 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Net revenue | $ | 4,139 | $ | 1,771 | ||||
Cost of products sold: | ||||||||
Cost of products sold | 1,573 | 699 | ||||||
Amortization of acquisition-related intangible assets | 559 | 130 | ||||||
Restructuring charges | 6 | 1 | ||||||
Total cost of products sold | 2,138 | 830 | ||||||
Gross margin | 2,001 | 941 | ||||||
Research and development | 808 | 267 | ||||||
Selling, general and administrative | 201 | 114 | ||||||
Amortization of acquisition-related intangible assets | 440 | 54 | ||||||
Restructuring, impairment and disposal charges | 46 | 31 | ||||||
Total operating expenses | 1,495 | 466 | ||||||
Operating income | 506 | 475 | ||||||
Interest expense | (111 | ) | (84 | ) | ||||
Loss on extinguishment of debt | (159 | ) | — | |||||
Other income, net | 31 | 3 | ||||||
Income from continuing operations before income taxes | 267 | 394 | ||||||
Provision for income taxes | 10 | 17 | ||||||
Income from continuing operations | 257 | 377 | ||||||
Loss from discontinued operations, net of income taxes | (5 | ) | — | |||||
Net income | $ | 252 | $ | 377 | ||||
General Partner's interest in net income | $ | 239 | $ | — | ||||
Limited Partners' interest in net income | $ | 13 | $ | — | ||||
Net income attributable to ordinary shareholders | $ | — | $ | 377 | ||||
Cash distribution paid per restricted exchangeable partnership unit | $ | 1.02 | $ | — | ||||
Cash distribution paid to General Partner | $ | 408 | $ | — | ||||
Cash dividends paid per ordinary share | $ | — | $ | 0.44 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Net income | $ | 252 | $ | 377 | ||||
Other comprehensive income, net of tax: | ||||||||
Other comprehensive income | — | — | ||||||
Comprehensive income | $ | 252 | $ | 377 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 252 | $ | 377 | ||||
Adjustments to reconcile income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,114 | 244 | ||||||
Share-based compensation | 202 | 57 | ||||||
Excess tax benefits from share-based compensation | — | (23 | ) | |||||
Non-cash portion of debt extinguishment loss | 159 | — | ||||||
Deferred taxes and other non-cash tax expense | (25 | ) | (8 | ) | ||||
Gain on disposition of assets | (23 | ) | — | |||||
Non-cash restructuring, impairment and disposal charges | 17 | 22 | ||||||
Amortization of debt discount issuance costs and accretion of debt discount | 8 | 4 | ||||||
Other | 5 | 4 | ||||||
Changes in assets and liabilities, net of acquisitions and disposals: | ||||||||
Trade accounts receivable, net | 234 | (41 | ) | |||||
Inventory | 65 | 34 | ||||||
Accounts payable | (137 | ) | (68 | ) | ||||
Employee compensation and benefits | (181 | ) | (149 | ) | ||||
Other current assets and current liabilities | (237 | ) | 16 | |||||
Other long-term assets and long-term liabilities | (100 | ) | 5 | |||||
Net cash provided by operating activities | 1,353 | 474 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property, plant and equipment | (325 | ) | (140 | ) | ||||
Proceeds from sales of businesses | 10 | 68 | ||||||
Other | (4 | ) | (13 | ) | ||||
Net cash used in investing activities | (319 | ) | (85 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | 13,550 | — | ||||||
Debt repayments | (13,668 | ) | (11 | ) | ||||
Debt issuance costs | (107 | ) | (4 | ) | ||||
Dividend payments to ordinary shareholders | — | (122 | ) | |||||
Distributions paid to unit holders | (431 | ) | — | |||||
Issuance of ordinary shares by General Partner | — | 72 | ||||||
Capital transactions with General Partner | (29 | ) | — | |||||
Excess tax benefits from share-based compensation | — | 23 | ||||||
Net cash used in financing activities | (685 | ) | (42 | ) | ||||
Net change in cash and cash equivalents | 349 | 347 | ||||||
Cash and cash equivalents at the beginning of period | 3,044 | 1,822 | ||||||
Cash and cash equivalents at end of period | $ | 3,393 | $ | 2,169 |
Fiscal Quarter Ended | ||||
January 31, 2016 | ||||
Pro forma net revenue | $ | 3,821 | ||
Pro forma net income from continuing operations | $ | 148 | ||
Pro forma net income | $ | 148 | ||
Pro forma net income attributable to ordinary shares | $ | 140 | ||
Pro forma income per share attributable to ordinary shares - basic | $ | 0.36 | ||
Pro forma income per share attributable to ordinary shares - diluted | $ | 0.35 |
January 29, 2017 | October 30, 2016 | |||||||
Finished goods | $ | 478 | $ | 431 | ||||
Work-in-process | 612 | 596 | ||||||
Raw materials | 246 | 373 | ||||||
Total inventory | $ | 1,336 | $ | 1,400 |
Accrued Rebate Liabilities | ||||
Balance as of October 30, 2016 | $ | 317 | ||
Charged as a reduction of revenue | 64 | |||
Reversal of unclaimed rebates | (19 | ) | ||
Payments | (126 | ) | ||
Balance as of January 29, 2017 | $ | 236 |
January 29, 2017 | October 30, 2016 | |||||||
Deferred tax liabilities | $ | 10,274 | $ | 10,287 | ||||
Unrecognized tax benefits (a) | 1,060 | 893 | ||||||
Other | 71 | 113 | ||||||
Total other long-term liabilities | $ | 11,405 | $ | 11,293 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Cash paid for interest | $ | 102 | $ | 80 | ||||
Net cash paid (refunds received) for income taxes | $ | 97 | $ | (7 | ) |
Wired Infrastructure | Wireless Communications | Enterprise Storage | Industrial & Other | Total | ||||||||||||||||
Balance as of October 30, 2016 | $ | 17,641 | $ | 5,952 | $ | 995 | $ | 144 | $ | 24,732 | ||||||||||
Broadcom Merger adjustments | (25 | ) | (7 | ) | — | — | (32 | ) | ||||||||||||
Balance as of January 29, 2017 | $ | 17,616 | $ | 5,945 | $ | 995 | $ | 144 | $ | 24,700 |
Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||
As of January 29, 2017: | ||||||||||||
Purchased technology | $ | 12,382 | $ | (2,412 | ) | $ | 9,970 | |||||
Customer contracts and related relationships | 4,231 | (1,807 | ) | 2,424 | ||||||||
Trade names | 528 | (87 | ) | 441 | ||||||||
Other | 115 | (11 | ) | 104 | ||||||||
Intangible assets subject to amortization | 17,256 | (4,317 | ) | 12,939 | ||||||||
In-process research and development | 1,128 | — | 1,128 | |||||||||
Total | $ | 18,384 | $ | (4,317 | ) | $ | 14,067 | |||||
As of October 30, 2016: | ||||||||||||
Purchased technology | $ | 12,182 | $ | (1,855 | ) | $ | 10,327 | |||||
Customer contracts and related relationships | 4,231 | (1,377 | ) | 2,854 | ||||||||
Trade names | 528 | (77 | ) | 451 | ||||||||
Other | 107 | (7 | ) | 100 | ||||||||
Intangible assets subject to amortization | 17,048 | (3,316 | ) | 13,732 | ||||||||
In-process research and development | 1,336 | — | 1,336 | |||||||||
Total | $ | 18,384 | $ | (3,316 | ) | $ | 15,068 |
Fiscal Year: | ||||
2017 (remainder) | $ | 3,224 | ||
2018 | 2,855 | |||
2019 | 2,101 | |||
2020 | 1,735 | |||
2021 | 1,389 | |||
2022 | 1,008 | |||
Thereafter | 627 | |||
Total | $ | 12,939 |
Amortizable intangible assets: | ||
Purchased technology | 6 | |
Customer contracts and related relationships | 3 | |
Trade name | 13 | |
Other | 12 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Numerator - Basic: | ||||||||
Income from continuing operations | $ | 257 | $ | 377 | ||||
Less: Income from continuing operations attributable to noncontrolling interest | 13 | — | ||||||
Income from continuing operations attributable to ordinary shares | $ | 244 | $ | 377 | ||||
Loss from discontinued operations, net of income taxes | $ | (5 | ) | $ | — | |||
Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest | — | — | ||||||
Loss from discontinued operations, net of income taxes, attributable to ordinary shares | $ | (5 | ) | $ | — | |||
Net income attributable to ordinary shares | $ | 239 | $ | 377 | ||||
Numerator - Diluted: | ||||||||
Income from continuing operations | $ | 257 | $ | 377 | ||||
Loss from discontinued operations, net of income taxes | (5 | ) | — | |||||
Net income | $ | 252 | $ | 377 |
Denominator: | ||||||||
Weighted-average ordinary shares outstanding - basic | 399 | 277 | ||||||
Dilutive effect of equity awards | 17 | 12 | ||||||
Exchange of noncontrolling interest for ordinary shares | 23 | — | ||||||
Weighted-average ordinary shares outstanding - diluted | 439 | 289 | ||||||
Basic income per share attributable to ordinary shares: | ||||||||
Income per share from continuing operations | $ | 0.61 | $ | 1.36 | ||||
Loss per share from discontinued operations, net of income taxes | (0.01 | ) | — | |||||
Net income per share | $ | 0.60 | $ | 1.36 | ||||
Diluted income per share attributable to ordinary shares: | ||||||||
Income per share from continuing operations | $ | 0.58 | $ | 1.30 | ||||
Loss per share from discontinued operations, net of income taxes | (0.01 | ) | — | |||||
Net income per share | $ | 0.57 | $ | 1.30 |
January 29, 2017 | |||||||||||||
Interest Rate | Effective Interest Rate | Issuance Price | Amount (In millions) | ||||||||||
Fixed rate notes due January 2020 | 2.375 | % | 2.620 | % | 99.774 | % | $ | 2,750 | |||||
Fixed rate notes due January 2022 | 3.000 | % | 3.214 | % | 99.592 | % | 3,500 | ||||||
Fixed rate notes due January 2024 | 3.625 | % | 3.744 | % | 99.896 | % | 2,500 | ||||||
Fixed rate notes due January 2027 | 3.875 | % | 4.018 | % | 99.558 | % | 4,800 | ||||||
Unaccreted discount and unamortized debt issuance costs | (127 | ) | |||||||||||
Carrying value of Senior Notes | $ | 13,423 |
January 29, 2017 | ||||||||||
Interest Rate | Effective Interest Rate | Amount (in millions) | ||||||||
Fixed rate notes due November 2018 | 2.70 | % | 2.70 | % | $ | 117 | ||||
Fixed rate notes due August 2022 - August 2034 | 2.50% - 4.50% | 2.50% - 4.50% | 22 | |||||||
Carrying value of Assumed Senior Notes | $ | 139 |
Fiscal Year | ||||
2017 (remainder) | $ | — | ||
2018 | 117 | |||
2019 | — | |||
2020 | 2,750 | |||
2021 | — | |||
2022 | 3,509 | |||
Thereafter | 7,313 | |||
Total | $ | 13,689 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Cost of products sold | $ | 14 | $ | 6 | ||||
Research and development | 141 | 28 | ||||||
Selling, general and administrative | 46 | 23 | ||||||
Total share-based compensation expense | $ | 201 | $ | 57 |
Number of RSUs Outstanding | Weighted- Average Grant Date Fair Value Per Share | Weighted- Average Remaining Contractual Life (In years) | Aggregate Grant Date Fair Value | ||||||||||
Balance as of October 30, 2016 | 17 | $ | 130.71 | ||||||||||
Granted | — | * | $ | 159.37 | |||||||||
Vested | (1 | ) | $ | 122.76 | $ | 81 | |||||||
Forfeited | (1 | ) | $ | 135.98 | |||||||||
Balance as of January 29, 2017 | 15 | $ | 131.32 | 1.40 |
Number of Options Outstanding | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Life (In years) | Aggregate Intrinsic Value | ||||||||||
Balance as of October 30, 2016 | 15 | $ | 48.77 | ||||||||||
Exercised | (2 | ) | $ | 45.78 | $ | 189 | |||||||
Cancelled | — | * | $ | 62.85 | |||||||||
Balance as of January 29, 2017 | 13 | $ | 48.97 | 3.49 | $ | 2,067 | |||||||
Fully vested as of January 29, 2017 | 9 | $ | 43.35 | 3.22 | $ | 1,482 | |||||||
Fully vested and expected to vest as of January 29, 2017 | 13 | $ | 48.97 | 3.49 | $ | 2,067 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Net revenue: | ||||||||
Wired infrastructure | $ | 2,084 | $ | 386 | ||||
Wireless communications | 1,175 | 578 | ||||||
Enterprise storage | 707 | 678 | ||||||
Industrial & other | 173 | 129 | ||||||
Total net revenue | $ | 4,139 | $ | 1,771 | ||||
Operating income: | ||||||||
Wired infrastructure | $ | 933 | $ | 135 | ||||
Wireless communications | 427 | 265 | ||||||
Enterprise storage | 375 | 309 | ||||||
Industrial & other | 61 | 63 | ||||||
Unallocated expenses | (1,290 | ) | (297 | ) | ||||
Total operating income | $ | 506 | $ | 475 |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
Total net revenue | $ | 77 | $ | 39 | ||||
Total costs and expenses, including inventory purchases | $ | 19 | $ | 13 |
January 29, 2017 | October 30, 2016 | |||||||
Total receivables | $ | 23 | $ | 15 | ||||
Total payables | $ | 11 | $ | 7 |
Fiscal Year | ||||||||||||||||||||||||||||||||
Total | 2017 (remainder) | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | |||||||||||||||||||||||||
Debt principal, interest and fees | $ | 16,919 | $ | 222 | $ | 569 | $ | 450 | $ | 3,166 | $ | 383 | $ | 3,839 | $ | 8,290 | ||||||||||||||||
Purchase commitments | $ | 1,029 | $ | 960 | $ | 54 | $ | 14 | $ | 1 | $ | — | $ | — | $ | — |
Employee Termination Costs | Leases and Other Exit Costs | Total | ||||||||||
Balance as of October 30, 2016 | $ | 116 | $ | 35 | $ | 151 | ||||||
Restructuring charges (a) | 36 | 10 | 46 | |||||||||
Utilization | (65 | ) | (15 | ) | (80 | ) | ||||||
Balance as of January 29, 2017 (b) | $ | 87 | $ | 30 | $ | 117 |
• | Our cash and cash equivalents were $3,536 million at January 29, 2017, compared with $3,097 million at October 30, 2016. |
• | We generated $1,353 million of cash from operations during the fiscal quarter ended January 29, 2017. |
• | Broadcom paid aggregate cash dividends on its ordinary shares of $408 million, and the Partnership made aggregate distributions of $23 million on its restricted exchangeable limited partnership units, or Partnership REUs, during the fiscal quarter ended January 29, 2017. |
• | On January 19, 2017, two Broadcom subsidiaries completed the issuance and sale of senior unsecured notes, or the Senior Notes, in an aggregate principal amount of $13,550 million. The net proceeds, together with cash on hand, |
Fiscal Quarter Ended | ||||||||||||||
January 29, 2017 | January 31, 2016 | January 29, 2017 | January 31, 2016 | |||||||||||
(In millions) | (As a percentage of net revenue) | |||||||||||||
Statements of Operations Data: | ||||||||||||||
Net revenue | $ | 4,139 | $ | 1,771 | 100 | % | 100 | % | ||||||
Cost of products sold: | ||||||||||||||
Cost of products sold | 1,573 | 699 | 38 | 40 | ||||||||||
Amortization of acquisition-related intangible assets | 559 | 130 | 14 | 7 | ||||||||||
Restructuring charges | 6 | 1 | — | — | ||||||||||
Total cost of products sold | 2,138 | 830 | 52 | 47 | ||||||||||
Gross margin | 2,001 | 941 | 48 | 53 | ||||||||||
Research and development | 808 | 267 | 19 | 15 | ||||||||||
Selling, general and administrative | 201 | 114 | 5 | 6 | ||||||||||
Amortization of acquisition-related intangible assets | 440 | 54 | 11 | 3 | ||||||||||
Restructuring, impairment and disposal charges | 46 | 31 | 1 | 2 | ||||||||||
Total operating expenses | 1,495 | 466 | 36 | 26 | ||||||||||
Operating income | $ | 506 | $ | 475 | 12 | % | 27 | % |
Fiscal Quarter Ended | |||||||||||||||
Net Revenue | January 29, 2017 | January 31, 2016 | $ Change | % Change | |||||||||||
(In millions, except for percentages) | |||||||||||||||
Wired infrastructure | $ | 2,084 | $ | 386 | $ | 1,698 | 440 | % | |||||||
Wireless communications | 1,175 | 578 | 597 | 103 | % | ||||||||||
Enterprise storage | 707 | 678 | 29 | 4 | % | ||||||||||
Industrial & other | 173 | 129 | 44 | 34 | % | ||||||||||
Total net revenue | $ | 4,139 | $ | 1,771 | $ | 2,368 | 134 | % |
Fiscal Quarter Ended | ||||
% of Net Revenue | January 29, 2017 | January 31, 2016 | ||
Wired infrastructure | 50% | 22% | ||
Wireless communications | 29 | 33 | ||
Enterprise storage | 17 | 38 | ||
Industrial & other | 4 | 7 | ||
Total net revenue | 100% | 100% |
Fiscal Quarter Ended | |||||||||||||||
Operating Income | January 29, 2017 | January 31, 2016 | $ Change | % Change | |||||||||||
(In millions, except for percentages) | |||||||||||||||
Wired infrastructure | $ | 933 | $ | 135 | $ | 798 | 591 | % | |||||||
Wireless communications | 427 | 265 | 162 | 61 | % | ||||||||||
Enterprise storage | 375 | 309 | 66 | 21 | % | ||||||||||
Industrial & other | 61 | 63 | (2 | ) | (3 | )% | |||||||||
Unallocated expenses | (1,290 | ) | (297 | ) | (993 | ) | 334 | % | |||||||
Total operating income | $ | 506 | $ | 475 | $ | 31 | 7 | % |
Fiscal Quarter Ended | ||||||||
January 29, 2017 | January 31, 2016 | |||||||
(In millions) | ||||||||
Net cash provided by operating activities | $ | 1,353 | $ | 474 | ||||
Net cash used in investing activities | (319 | ) | (85 | ) | ||||
Net cash used in financing activities | (595 | ) | (42 | ) | ||||
Net change in cash and cash equivalents | $ | 439 | $ | 347 |
• | customer concentration and the gain or loss of significant customers; |
• | the timing of launches by our customers of new products, such as mobile handsets, in which our products are included and changes in end-user demand for the products manufactured and sold by our customers; |
• | changes in our product mix or customer mix and their effect on our gross margin; |
• | the timing of receipt, reduction or cancellation of significant orders by customers; |
• | fluctuations in the levels of component inventories held by our customers; |
• | utilization of our internal manufacturing facilities and fluctuations in manufacturing yields; |
• | our ability to successfully and timely integrate, and realize the benefits of acquisitions we may make and the timing of acquisitions or dispositions of, or making and exiting investments in, other entities, businesses or technologies; |
• | our ability to develop, introduce and market new products and technologies on a timely basis; |
• | the timing and extent of our non-product revenue, such as product development revenue and royalty and other payments from IP sales and licensing arrangements; |
• | new product announcements and introductions by us or our competitors; |
• | seasonality or other fluctuations in our markets; |
• | fluctuations in currency exchange rates; |
• | timing and amount of research and development and related new product expenditures, and the timing of receipt of any research and development grant monies; |
• | significant warranty claims, including those not covered by our suppliers or our insurers; |
• | availability and cost of raw materials from our suppliers; |
• | IP disputes and associated litigation expense; |
• | loss of key personnel or the shortage of available skilled workers; |
• | the effects of competitive pricing pressures, including decreases in average selling prices of our products; and |
• | changes in our tax incentive arrangements or structure, which may adversely affect our net tax expense and our cash flow in any quarter in which such an event occurs. |
• | reorganization or restructuring of our businesses, tangible and intangible assets, outstanding indebtedness and corporate structure; |
• | jurisdictional mix of our income and assets, and the resulting tax effects of differing tax rates in different countries; |
• | changes in the allocation of income and expenses, including adjustments related to changes in our corporate structure, acquisitions or tax law; |
• | changes in transfer pricing rules or methods of applying these rules; |
• | changes in tax laws, including in Singapore, changes to the taxation of earnings of foreign subsidiaries, the deductibility of expenses attributable to income and foreign tax credit rules; |
• | tax effects of increases in non-deductible employee compensation; |
• | changes in tax accounting rules or principles and in the valuation of deferred tax assets and liabilities; |
• | outcomes of income tax audits; and |
• | expiration, lapses or termination of tax credits or incentives. |
• | cease the manufacture, use or sale of the infringing products, processes or technology and/or make changes to our processes or products; |
• | pay substantial damages for past, present and future use of the infringing technology; |
• | expend significant resources to develop non-infringing technology; |
• | license technology from the third-party claiming infringement, which license may not be available on commercially reasonable terms, or at all; |
• | enter into cross-licenses with our competitors, which could weaken our overall IP portfolio and our ability to compete in particular product categories; |
• | indemnify our customers or distributors; |
• | pay substantial damages to our direct or end customers to discontinue use or replace infringing technology with non-infringing technology; or |
• | relinquish IP rights associated with one or more of our patent claims, if such claims are held invalid or otherwise unenforceable. |
• | IP rights that we presently employ in our business will not lapse or be invalidated, circumvented, challenged, or, in the case of third-party IP rights licensed to us, be licensed to others; |
• | our IP rights will provide competitive advantages to us; |
• | rights previously granted by third parties to IP rights licensed or assigned to us, including portfolio cross-licenses, will not hamper our ability to assert our IP rights against potential competitors or hinder the settlement of currently pending or future disputes; |
• | any of our pending or future patent, trademark or copyright applications will be issued or have the coverage originally sought; |
• | our IP rights will be enforced in certain jurisdictions where competition may be intense or where legal protection may be weak; or |
• | we have sufficient IP rights to protect our products or our business. |
• | changes in political, regulatory, legal or economic conditions or geopolitical turmoil, including terrorism, war or political or military coups, or civil disturbances or political instability; |
• | restrictive governmental actions, such as restrictions on the transfer or repatriation of funds and foreign investments and trade protection measures, including export restrictions, export duties and quotas, and customs duties and tariffs; |
• | disruptions of capital and trading markets and currency fluctuations, which may result in our products becoming too expensive for foreign customers or foreign-sourced materials and services becoming more expensive for us; |
• | difficulty in obtaining product distribution and support, and transportation delays; |
• | public health or safety concerns; |
• | nationalization of businesses and expropriation of assets; and |
• | changes in tax laws. |
• | increasing our vulnerability to adverse general economic and industry conditions; |
• | requiring us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, research and development efforts, execution of our business strategy, acquisitions and other general corporate purposes; |
• | limiting our flexibility in planning for, or reacting to, changes in the economy and the semiconductor industry; |
• | placing us at a competitive disadvantage compared to our competitors with less indebtedness; and |
• | making it more difficult to borrow additional funds in the future to fund growth, acquisitions, working capital, capital expenditures and other purposes; and |
• | exposing us to interest rate risk to the extent we incur any variable rate indebtedness, and we do not typically hedge against changes in interest rates. |
• | incur additional indebtedness and issue preferred or redeemable shares; |
• | incur or create liens; |
• | consolidate, merge or transfer all or substantially all of their assets; |
• | make investments, acquisitions, loans or advances or guarantee indebtedness; |
• | transfer or sell certain assets; |
• | pay dividends or make other distributions on, redeem or repurchase shares or make other restricted payments; |
• | engage in transactions with affiliates; and |
• | prepay certain other indebtedness. |
• | actual or anticipated fluctuations in our financial condition and operating results; |
• | issuance of new or updated research or reports by securities analysts; |
• | fluctuations in the valuation and results of operations of our significant customers as well as companies perceived by investors to be comparable to us; |
• | announcements of proposed acquisitions by us or our competitors; |
• | announcements of, or expectations of additional debt or equity financing efforts; |
• | share price and volume fluctuations attributable to inconsistent trading volume levels of our shares; |
• | issuance of ordinary shares upon exchange of Partnership REUs; and |
• | changes in our dividend or share repurchase policies. |
BROADCOM LIMITED | |||
By: | /s/ Thomas H. Krause, Jr. | ||
Thomas H. Krause, Jr. | |||
Vice President and Chief Financial Officer |
BROADCOM CAYMAN L.P. by Broadcom Limited, its General Partner | |||
By: | /s/ Thomas H. Krause, Jr. | ||
Thomas H. Krause, Jr. | |||
Vice President and Chief Financial Officer |
Incorporated by Reference Herein | |||||||||
Exhibit Number | Description | Form | Filing Date | Filed Herewith | |||||
2.1# | Agreement and Plan of Merger, dated as of April 10, 2013, by and among CyOptics, Avago Technologies Wireless (U.S.A.) Manufacturing Inc., Celsus Acquisition Corp., Avago Technologies Limited, Avago Technologies Finance Pte. Ltd. and Shareholder Representative Services LLC. | Avago Technologies Limited Current Report on Form 8-K (Commission File No. 001-34428) | April 11, 2013 | ||||||
2.2# | Agreement and Plan of Merger, dated December 15, 2013, by and among LSI Corporation, Avago Technologies Limited, Avago Technologies Wireless (U.S.A.) Manufacturing, Inc. and Leopold Merger Sub, Inc. | Avago Technologies Limited Current Report on Form 8-K/A (Commission File No. 001-34428) | December 16, 2013 | ||||||
2.3# | Agreement and Plan of Merger, dated May 28, 2015, by and among Pavonia Limited, Avago Technologies Limited, Safari Cayman L.P., Avago Technologies Cayman Holdings Ltd., Avago Technologies Cayman Finance Limited, Buffalo CS Merger Sub, Inc., Buffalo UT Merger Sub, Inc. and Broadcom Corporation. | Avago Technologies Limited Current Report on Form 8-K (Commission File No. 001-34428) | May 29, 2015 | ||||||
2.4 | Amendment No. 1 to Agreement and Plan of Merger, dated July 29, 2015, by and between Avago Technologies Limited and Broadcom Corporation. | Avago Technologies Limited Current Report on Form 8-K (Commission File No. 001-34428) | July 31, 2015 | ||||||
2.5# | Agreement and Plan of Merger, dated November 2, 2016, by and among Brocade Communications Systems, Inc., Broadcom Limited, Broadcom Corporation and Bobcat Merger Sub, Inc. | Broadcom Limited Current Report on Form 8-K/A (Commission File No. 001-37690) | November 2, 2016 | ||||||
3.1 | Constitution of Broadcom Limited | Broadcom Limited Current Report on Form 8-K12B (Commission File No. 001-37690) | February 2, 2016 | ||||||
3.2 | Amended and Restated Exempted Limited Partnership Agreement of Broadcom Cayman L.P. (f/k/a Safari Cayman L.P.), dated February 1, 2016 | Broadcom Limited Current Report on Form 8-K12B (Commission File No. 001-37690) | February 2, 2016 | ||||||
3.3 | Voting Trust Agreement, dated as of February 1, 2016, by and among Broadcom Limited, Broadcom Cayman L.P. and Computershare Trust Company, N.A., as Trustee | Broadcom Limited Current Report on Form 8-K12B (Commission File No. 001-37690) | February 2, 2016 | ||||||
4.1 | Form of Specimen Share Certificate for Registrant’s Ordinary Shares. | Broadcom Limited Registration Statement on Form S-3 (Commission File No. 333-209923) | March 4, 2016 |
Incorporated by Reference Herein | |||||||||
Exhibit Number | Description | Form | Filing Date | Filed Herewith | |||||
4.2 | Indenture, dated as of January 19, 2017, by and among the Broadcom Corporation and Broadcom Cayman Finance Limited (“Co-Issuers”), the Company, Broadcom Cayman L.P., and BC Luxembourg S.à r.l. (the “Guarantors”) and Wilmington Trust, National Association, as trustee. | Broadcom Limited Current Report on Form 8-K (Commission File No. 001-37690) | January 20, 2017 | ||||||
4.3 | Form of 2.375% Senior Note due 2020 (included in Exhibit 4.2). | Broadcom Limited Current Report on Form 8-K (Commission File No. 001-37690) | January 20, 2017 | ||||||
4.4 | Form of 3.000% Senior Note due 2022 (included in Exhibit 4.2). | Broadcom Limited Current Report on Form 8-K (Commission File No. 001-37690) | January 20, 2017 | ||||||
4.5 | Form of 3.625% Senior Note due 2024 (included in Exhibit 4.2). | Broadcom Limited Current Report on Form 8-K (Commission File No. 001-37690) | January 20, 2017 | ||||||
4.6 | Form of 3.875% Senior Note due 2027 (included in Exhibit 4.2). | Broadcom Limited Current Report on Form 8-K (Commission File No. 001-37690) | January 20, 2017 | ||||||
4.7 | Registration Rights Agreement, dated as of January 19, 2017, by and among the Co-Issuers, the Guarantors and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Barclays Capital Inc., as representatives of the several initial purchasers of the Senior Notes. | Broadcom Limited Current Report on Form 8-K (Commission File No. 001-37690) | January 20, 2017 | ||||||
10.1 | Third Amendment, dated as of January 19, 2017, to the Credit Agreement among Avago Technologies Cayman Holdings Ltd., Broadcom Cayman Finance Limited, BC Luxembourg S.à r.l., Bank of America, N.A., as administrative agent, and the lenders party thereto. | Broadcom Limited Current Report on Form 8-K (Commission File No. 001-37690) | January 20, 2017 | ||||||
10.2+ | Form of Performance Share Unit Agreement (Relative TSR) under Avago Technologies Limited 2009 Equity Incentive Plan. | X | |||||||
10.3+ | Form of Performance Share Unit Agreement (Relative TSR) under Broadcom Corporation 2012 Stock Incentive Plan. | X | |||||||
Incorporated by Reference Herein | |||||||||
Exhibit Number | Description | Form | Filing Date | Filed Herewith | |||||
31.1 | Certification of Principal Executive Officer of Broadcom Limited Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||
31.2 | Certification of Principal Financial Officer of Broadcom Limited Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||
31.3 | Certification of Principal Executive Officer for Broadcom Cayman L.P. Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||
31.4 | Certification of Principal Financial Officer for Broadcom Cayman L.P. Pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | X | |||||||
32.1 | Certification of Principal Executive Officer of Broadcom Limited Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||
32.2 | Certification of Principal Financial Officer of Broadcom Limited Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||
32.3 | Certification of Principal Executive Officer for Broadcom Cayman L.P. Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||
32.4 | Certification of Principal Financial Officer for Broadcom Cayman L.P. Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | X | |||||||
101.INS | XBRL Instance Document | X | |||||||
101.SCH | XBRL Schema Document | X | |||||||
101.CAL | XBRL Calculation Linkbase Document | X | |||||||
101.DEF | XBRL Definition Linkbase Document | X | |||||||
Incorporated by Reference Herein | |||||||||
Exhibit Number | Description | Form | Filing Date | Filed Herewith | |||||
101.LAB | XBRL Labels Linkbase Document | X | |||||||
101.PRE | XBRL Presentation Linkbase Document | X |
# | Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Broadcom Limited hereby undertakes to furnish supplementally copies of any omitted schedules upon request by the SEC. |
+ | Indicates a management contract or compensatory plan or arrangement. |
* | Certain information omitted pursuant to a request for confidential treatment filed with the SEC. |
Notice of Grant of Performance Share Unit Award | BROADCOM LIMITED | |
Under the Avago Technologies Limited | 1 Yishun Avenue 7 | |
2009 Equity Incentive Award Plan | Singapore 768923 |
GRANTEE NAME: | Grant Date: | ||
GRANTEE ID: Participant ID GRANT NUMBER: Client Grant ID | Number of Performance Share Units: |
Notice of Grant of Performance Share Unit Award | BROADCOM LIMITED | |
Under the Broadcom Corporation 2012 Stock Incentive Plan | 1 Yishun Avenue 7 Singapore 768923 |
GRANTEE NAME: | Grant Date: | ||
GRANTEE ID: Participant ID GRANT NUMBER: Client Grant ID | Number of Performance Share Units: |
(a)(i) | Ordinary Shares cannot be delivered upon vesting of PSUs prior to the first anniversary of the Grant Date. Any Ordinary Shares delivered to you upon vesting of the PSUs on or following the first anniversary of the Grant Date but prior to the second anniversary of the Grant Date cannot be transferred prior to either (x) the first anniversary of the date the Ordinary Shares are delivered to you or (y) such earlier date as determined by the Plan Administrator, in its sole discretion, that will not result in negative tax or legal consequences to either the Company or you (such period of time during which transfer is prohibited, the “Holding Period”). For the avoidance of doubt, there is no Holding Period for any Ordinary Shares delivered to you on or following the second anniversary of the Grant Date. In the event that you do not comply with |
(ii) | At the expiration of the Holding Period (if applicable), if the Ordinary Shares are listed on any established stock exchange or a national market system, Ordinary Shares cannot be sold (i) during the ten trading sessions preceding and following the date on which the consolidated accounts or annual accounts of the Company are first released to the public, and (ii) during a period (x) |
ERKLÆRING OM TILDELING AF BETINGEDE AKTIEENHEDER, HERUNDER ERKLÆRING I HENHOLD TIL AKTIEOPTIONSLOVEN | STATEMENT CONCERNING GRANTING OF PERFORMANCE SHARE UNITS, INCLUDING STATEMENT PUPSUANT TO THE DANISH STOCK OPTION ACT |
Broadcom Danmark ApS ("Selskabet") | Broadcom Danmark ApS (the "Company") |
Og Medarbejderen, der elektronisk har givet samtykke til vilkårene og betingelserne i Performance Share Unit Award Agreement. ("Medarbejderen") | And The individual providing services to the Company electronically consenting to the terms and conditions of the Performance Share Unit Award Agreement. (the "Service Provider") |
Og Broadcom Limited 1 Yishun Avenue 7 Singapore 768923 ("Moderselskabet") | And Broadcom Limited 1 Yishun Avenue 7 Singapore 768923 (the "Parent Company") |
har indgået Performance Share Unit Award Agreement og alle bilag og tillæg hertil ("Tildelingsaftalen") i relation til de Performance Share Units ("PSU’er"), som Moderselskabet har tildelt Medarbejderen. Denne erklæring ("Erklæringen”) udgør en erklæring til Medarbejderen i henhold til § 3, stk. 1 i lov om brug af køberet eller tegningsret til aktier m.v. i ansættelsesforhold ("Aktieoptionsloven"). | have entered into the Performance Share Unit Award Agreement, including all exhibits and appendices thereto (the "Agreement") concerning the Performance Share Units (the "PSUs") granted by the Parent Company to the Service Provider. This statement (the “Statement”) constitutes a statement to the Service Provider pursuant to section 3 (1) of the Danish Act on the exercise of stock acquisition rights or stock subscription rights in employment relationships, etc. (the "Stock Option Act"). |
I tilfælde af uoverensstemmelser mellem Erklæringen og Tildelingsaftalen og/eller Medarbejderens ansættelsesaftale med Selskabet har Tildelingsaftalen forrang. | In the event of any discrepancies between the Statement and the Agreement and/or Service Provider's contract of employment with the Company, this Agreement shall prevail. |
Moderselskabet har vedtaget et Performance Share Unit program, der omfatter medarbejdere i Moderselskabet og dettes datterselskaber, herunder Selskabets medarbejdere. Vilkårene for Performance Share Unit-programmet, der også omfatter de Performance Share Units, der tildeles i medfør af Tildelingsaftalen, er fastsat i "Broadcom Corporation 2012 Stock Incentive Plan" (benævnt "Aktieincitamentsprogrammet"). | The Parent Company has adopted a Performance Share Unit program covering the Service Providers of the Parent Company and its subsidiaries, including the employees of the Company. The terms of the Performance Share Unit program, which also include the Performance Share Units granted under the Agreement, appear from the "Broadcom Corporation 2012 Stock Incentive Plan" (the "Equity Incentive Program"). |
Vilkårene i Aktieincitamentsprogrammet finder anvendelse på Medarbejderens Performance Share Units, medmindre Tildelingsaftalen fastsætter vilkår, der fraviger vilkårene i Aktieincitamentsprogrammet. I sådanne tilfælde har Tildelingsaftalen vilkår forrang. | The terms of the Equity Incentive Program apply to the Service Provider's Performance Share Units, unless the Agreement stipulates terms that deviate from the terms of the Equity Incentive Program. In such situations, the terms of the Agreement shall prevail. |
Definitioner anvendt i Tildelingsaftalen skal have samme betydning som i Aktieincitamentsprogrammet, medmindre andet følger af Tildelingsaftalen. | The definitions of the Agreement shall have the same meaning as the definitions of the Equity Incentive Program, unless otherwise provided by Agreement. |
1. PERFORMANCE SHARE UNITS OG VEDERLAG | 1. PERFORMANCE SHARE UNITS AND CONSIDERATION |
1.1 Medarbejderen tildeles løbende Performance share units, der giver Medarbejderen ret til aktier ("Aktier") i Moderselskabet og/eller kontantbetaling. De pågældende Performance Share Units tildeles vederlagsfrit. | 1.1 The Service Provider is granted Performance Share Units on a current basis entitling the Service Provider to shares ("Ordinary Shares") in the Parent Company and/or cash payment. The Performance Share Units are granted free of charge. |
1.2 Værdien pr. aktie, som Performance Share Units’erne repræsenterer vil blive som nærmere fastsat i Tildelingsaftalen. | 1.2 The value per share that the Performance Share Units represent shall be as specified in the Agreement. |
2. ØVRIGE VILKÅR OG BETINGELSER | 2. OTHER TERMS AND CONDITIONS |
2.1 Performance Share Units’erne tildeles ioverensstemmelse med Aktieincitamentsprogrammet. | 2.1 The Performance Share Units are granted under the Equity Incentive Program. |
2.2 Performance Share Units’erne tildeles efter Administrator af Ordningens skøn og når Administrator af Ordningen måtte beslutte det. | 2.2 The Performance Share Units are granted at the discretion of the Plan Administrator and at the timing of its discretion. |
2.3 Performance Share Units’erne optjenes i overensstemmelse med Tildelingsaftalen. | 2.3 The Performance Share Units shall vest as set forth in the Agreement. |
2.4 Optjeningen af Performance Share Units er betinget af, at Medarbejderen er ansat i Selskabet i optjeningsperioden, og der hverken tildeles eller optjenes Performance Share Units efter ansættelsesforholdets ophør, uanset årsag hertil, jf. dog nedenfor. Optjeningen af Performance Share Units påvirkes ikke af lovreguleret orlov. | 2.4 The earning of Performance Share Units is conditional on the Service Provider being employed with the Company for the duration of the vesting period and no Performance Share Units are granted or earned after the termination of the employment, regardless of the reason for such termination, cf. however below. The earning of Performance Share Units is not influenced by statutory leave. |
3. UDNYTTELSE | 3. EXERCISE |
3.1 Efter optjeningsperioden kan Optjente Performance Share Units udnyttes forudsat, at de ikke er bortfaldet efter vilkårene i Tildelingsaftalen og indtil det tidspunkt, hvor sådanne Performance Share Units ophører, bortfalder og/eller fortabes i overensstemmelse med vilkårene i Tildelingsaftalen. | 3.1 Following vesting, earned Performance Share Units will be exercisable as long as they remain validly outstanding pursuant to the Agreement, until the date such Performance Share Units are terminated, cancelled and/or forfeited pursuant to the terms of the Agreement. |
3.2 Såfremt (i) Selskabet opsiger Medarbejderens ansættelsesforhold, uden at Medarbejderen har misligholdt ansættelsesforholdet, eller (ii) Medarbejderen opsiger ansættelsesforholdet som følge af Selskabets grove misligholdelse, har Medarbejderen uanset opsigelsen ret til betaling af ikke-optjente og ikke- udbetalte Performance Share Units ioverensstemmelse med Aktieincitamentsprogrammet og Tildelingsaftalen. | 3.2 In the event that (i) the Company terminates the Service Provider's employment for reasons other than the Service Provider's breach of the employment, or (ii) the Service Provider terminates the employment due to material breach on the part of the Company, the Service Provider is, irrespective of the termination, entitled to settlement of any unvested Performance Share Units remaining unsettled in accordance with the Equity Incentive Program and the Agreement. |
3.3 I tilfælde af Medarbejderens opsigelse, uden at Selskabet groft har misligholdt ansættelsesforholdet, fortabes og bortfalder alle ikke- optjente Performance Share Units, der ikke er udbetalt på det tidspunkt, hvor ansættelsen ophører, uden yderligere varsel og uden kompensation. Medarbejderen bevarer dog retten til betaling for optjente og ikke-udbetalte Performance Share Units i overensstemmelse med Aktieincitamentsprogrammet og Tildelingsaftalen. | 3.3 If the Service Provider terminates the employment without the Company being in gross breach of the employment, all unvested Performance Share Units, which have not been exercised at the time of the termination, will be forfeited and lapse without further notice or compensation. The Service Provider, however is entitled to settlement of all vested Performance Share Units which have not been settled at the time of the termination in accordance with the Equity Incentive Program and the Agreement. |
3.4 I tilfælde af Selskabets opsigelse og/eller bortvisning som følge af Medarbejderens misligholdelse af ansættelsesforholdet bortfalder Medarbejderens Performance Share Units som ikke er optjent uden yderligere varsel eller kompensation pr. ansættelsesforholdets ophør. | 3.4 If the Company terminates and/or summarily dismisses the Service Provider due the Service Provider's breach of the employment, all Performance Share Units, which have not vested at the time of termination, will lapse without further notice or compensation at the effective date of termination. |
3.5 Ved Medarbejderens død bortfalder Medarbejderens ikke-optjente Performance Share Units uden yderligere varsel og kompensation pr. dødstidspunktet. Boet og/eller arvingerne er i øvrigt i enhver henseende underlagt de for Medarbejderen fastsatte vilkår for Performance Share Units og de dertil knyttede aktier. | 3.5 In the event of the Service Provider's death, unvested Performance Share Units will lapse without further notice and compensation as at the time of death. The estate and/or the beneficiaries are subject to the terms governing the Service Provider's Performance Share Units and the related Ordinary Shares. |
3.6 Ved aldersbetinget pensionering (folkepension) eller særskilt aftale herom og ved invaliditet har Medarbejderen ret til at få udbetaling for tildelte, ikke-udbetalte Performance Share Units. Medarbejderen er underlagt de for Medarbejderne fastsatte vilkår for Performance Share Units og de dertil knyttede aktier. | 3.6 Upon retirement due to old age ("folkepension") or separate agreement in this respect and in the event of disability, the Service Provider is entitled to settlement of granted and unsettled Performance Share Units. The Service Provider is subject to the terms governing the Performance Share Units and the related Ordinary Shares. |
4. REGULERING AF PERFORMANCE SHARE UNITS | 4. ADJUSTMENT OF THE PERFORMANCE SHARE UNITS |
Regulering ved kapitalændringer | Adjustment in connection with capital changes |
4.1 Såfremt der sker en ændring i antallet af udestående Aktier som følge af ændring i Moderselskabets kapitalstruktur uden vederlag såsom aktieudbytte, rekapitalisering, aktiesplit, omvendt aktiesplit, rekonstruktion, fusion, konsolidering, opdeling, kombination, genkøb eller ombytning af Selskabets Aktier eller øvrige værdipapirer eller andre ændringer i Moderselskabets selskabsstruktur, der kan påvirke Aktien, kan der gennemføres justeringer, der kan påvirke Aktieincitamentsprogrammet, herunder en justering af antallet af samt klassen af Aktier, der kan opnås i henhold til Programmet, af Købsprisen pr. aktie og af det antal Aktier for hver option i henhold til Programmet, der endnu ikke er udnyttet, og de talmæssige begrænsninger i Aktieincitamentsprogrammet. | 4.1 If the number of outstanding Ordinary Shares is changed by a modification in the capital structure of the Parent Company without consideration such as a stock dividend, recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, combination, repurchase or exchange of Ordinary Shares or other securities of the Parent Company or other change in the corporate structure of the Parent Company affecting the Ordinary Shares, adjustments may be made that may impact the Equity Incentive Program and the Performance Share Units including adjusting the number and class of Ordinary Shares that may be delivered under the Equity Incentive Program and the numerical limits of the Equity Incentive Program. |
Andre ændringer | Other changes |
4.2 I tilfælde af forslag om opløsning eller likvidation af Selskabet, og i tilfælde af fusion eller ændring i kontrollen med Selskabet eller Moderselskabet, kan der ske andre reguleringer i Aktieincitamentsprogrammet og Performance Share Units. | 4.2 In the event of a proposed dissolution or liquidation of the Parent Company and in the event of a merger or a change in control of the Parent Company, other adjustments may be made to the Equity Incentive Program and the Performance Share Units. |
Administrator af Ordningens regulering af Optioner | Plan Administrator's regulation of Options |
4.3 Administrator af Ordningens adgang til at regulere Performance Share Units i de i § 4 omhandlede situationer er reguleret af vilkårene i Aktieincitamentsprogrammet. Med hensyn til Administrator af Ordningens generelle adgang til at ændre eller opsige Aktieincitamentsprogrammet, henvises der til artikel fem, punkt IV og punkt 3.7 i Aktieincitamentsprogrammet. | 4.3 The Plan Administrator’s access to regulation of the Performance Share Units in the situations comprised by this section 4 shall be regulated by the terms and conditions of the Equity Incentive Program. As regards the Plan Administrator’s, general access to amend or terminate the Equity Incentive Program reference is made to the Equity Incentive Program Article Five, Section IV and Section 3.7 of the Agreement. |
5. ØKONOMISKE ASPEKTER VED DELTAGELSE I ORDNINGEN | 5. THE FINANCIAL ASPECTS OF PARTICIPATING IN THE SCHEME |
5.1 Performance Share Units’erne er risikobetonede værdipapirer, der er afhængige af aktiemarkedet og Moderselskabets resultater. Som følge heraf er der ingen garanti for, at Performance Share Units’erne udløser en fortjeneste. Performance Share Units’erne skal ikke medregnes ved opgørelsen af feriepenge, fratrædelsesgodtgørelse, godtgørelse eller kompensation fastsat ved lov, pension og lignende. | 5.1 The Performance Share Units are risky securities the potential value of which is influenced by the market for Ordinary Shares and the Parent Company's results. Consequently, there is no guarantee that the vesting of the Performance Share Units will trigger a profit. The Performance Share Units are not to be included in the calculation of holiday allowance, severance pay, statutory allowance and compensation, pension and similar payments. |
6. SKATTEMÆSSIGE FORHOLD | 6. TAX MATTERS |
6.1 De skattemæssige konsekvenser for Medarbejderen som følge af tildelingen af Performance Share Units og den efterfølgende udnyttelse heraf er i sidste ende Medarbejderens ansvar. Selskabet opfordrer Medarbejderen til selvstændigt at indhente rådgivning om den skattemæssige behandling af tildeling og udnyttelse af Performance Share Units. | 6.1 Any tax consequences for the Service Provider arising out of the Performance Share Units and the exercise thereof are ultimately the responsibility of the Service Provider. The Company encourages the Service Provider to obtain individual tax advice in relation to the effect of grant and vesting of the Performance Share Units. |
7. OVERDRAGELSE OG PANTSÆTNING AF OPTIONER MV. | 7. TRANSFER AND PLEDGING OF OPTIONS, ETC. |
7.1 Performance Share Units er personlige. Ingen rettigheder om betaling for Performance Share Units eller tildeling af Aktier i henhold til Aktieincitamentsprogrammet kan overdrages, overføres, pantsættes eller på anden vis disponeres over af Medarbejderen, frivilligt eller ved udlæg. | 7.1 The Performance Share Units are personal instruments. No rights with regard to settlement of Performance Share Units or to receive Ordinary Shares under the Equity Incentive Program may assigned, transferred, pledged or otherwise disposed of in any way by the Service Provider whether voluntarily or by execution. |
1. | I have reviewed this Quarterly Report on Form 10-Q of Broadcom Limited; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Hock E. Tan | |
Hock E. Tan | |
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Broadcom Limited; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Thomas H. Krause, Jr. | |
Thomas H. Krause, Jr. | |
Chief Financial Officer and Principal Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Broadcom Cayman L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Hock E. Tan | |
Hock E. Tan | |
Chief Executive Officer of Broadcom Limited, the Registrant’s sole general partner |
1. | I have reviewed this Quarterly Report on Form 10-Q of Broadcom Cayman L.P.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Thomas H. Krause, Jr. | |
Thomas H. Krause, Jr. | |
Chief Financial Officer and Principal Financial Officer of Broadcom Limited, the Registrant’s sole general partner |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | March 9, 2017 | /s/ Hock E. Tan | |
Hock E. Tan | |||
Chief Executive Officer | |||
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | March 9, 2017 | /s/ Thomas H. Krause, Jr. |
Thomas H. Krause, Jr. | ||
Chief Financial Officer and Principal Financial Officer | ||
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: | March 9, 2017 | /s/ Hock E. Tan | |
Hock E. Tan | |||
Chief Executive Officer of Broadcom Limited, the Registrant’s sole general partner | |||
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: | March 9, 2017 | /s/ Thomas H. Krause, Jr. |
Thomas H. Krause, Jr. | ||
Chief Financial Officer and Principal Financial Officer of Broadcom Limited, the Registrant’s sole general partner | ||
Condensed Consolidated Balance Sheets - Unaudited - (Parenthetical) - shares |
Jan. 29, 2017 |
Oct. 30, 2016 |
---|---|---|
Ordinary Shares, Shares, Issued | 400,292,144 | 398,281,461 |
Ordinary Shares, Shares, Outstanding | 400,292,144 | 398,281,461 |
Special Voting Shares Issued | 22,804,591 | 22,804,591 |
Special Voting Shares Outstanding | 22,804,591 | 22,804,591 |
Broadcom Cayman L.P. [Member] | General Partner [Member] | ||
Ordinary Shares, Shares, Issued | 390,237,855 | 390,237,855 |
Ordinary Shares, Shares, Outstanding | 390,237,855 | 390,237,855 |
Broadcom Cayman L.P. [Member] | Limited Partner [Member] | ||
Ordinary Shares, Shares, Issued | 22,804,591 | 22,804,591 |
Ordinary Shares, Shares, Outstanding | 22,804,591 | 22,804,591 |
Condensed Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 29, 2017 |
Jan. 31, 2016 |
|
Net income | $ 252 | $ 377 |
Other comprehensive income | 0 | 0 |
Comprehensive income | 252 | 377 |
Comprehensive income attributable to noncontrolling interest | 13 | 0 |
Net income attributable to noncontrolling interest | 13 | 0 |
Comprehensive income attributable to ordinary shares | 239 | 377 |
Broadcom Cayman L.P. [Member] | ||
Net income | 252 | 377 |
Other comprehensive income | 0 | 0 |
Comprehensive income attributable to ordinary shares | $ 252 | $ 377 |
Overview, Basis of Presentation and Significant Accounting Policies |
3 Months Ended |
---|---|
Jan. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview, Basis of Presentation and Significant Accounting Policies | Overview, Basis of Presentation and Significant Accounting Policies Overview Broadcom Limited, or Broadcom, is a leading designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. We have a history of innovation and offer thousands of products that are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. We have four reportable segments: wired infrastructure, wireless communications, enterprise storage and industrial & other, which align with our principal target markets. Broadcom, a company organized under the laws of the Republic of Singapore, is the successor to Avago Technologies Limited, or Avago. Broadcom Cayman L.P., or the Partnership, is an exempted limited partnership formed under the laws of the Cayman Islands in order to effect the business combination between Avago and Broadcom Corporation, a California corporation, or BRCM. The acquisition of BRCM, or the Broadcom Merger, closed on February 1, 2016, or the Acquisition Date. Broadcom is the Partnership’s sole General Partner and currently owns a majority interest (by vote and value) in the Partnership represented by common partnership units, or Common Units. The balance of the partnership units are held by certain former BRCM shareholders, or the Limited Partners, in the form of restricted exchangeable limited partnership units, or Partnership REUs. As General Partner, Broadcom has the exclusive right, power and authority to manage, control, administer and operate the business and affairs and to make decisions regarding the undertaking and business of the Partnership in accordance with the Partnership’s amended and restated exempted limited partnership agreement, or Partnership Agreement, as amended from time to time, and applicable laws. The condensed consolidated financial statements and accompanying notes are being presented in a combined report being filed by two separate registrants: Broadcom and the Partnership. The differences in the condensed consolidated financial statements relate to the noncontrolling interest that represents the outstanding Partnership REUs and transactions between Broadcom and the Partnership, which are accounted for as capital transactions. Refer to Note 7. “Shareholders’ Equity” and Note 8. “Partners’ Capital” for additional information. Unless stated otherwise or the context otherwise requires, references to “Broadcom,” “we,” “our” and “us” mean Broadcom Limited and its consolidated subsidiaries, including Broadcom Cayman L.P. References to the “Partnership” mean Broadcom Cayman L.P. and its consolidated subsidiaries. Financial information and results of operations presented for the periods prior to February 1, 2016 relate to Avago, our predecessor, and relate to Broadcom and the Partnership for the periods after February 1, 2016. Basis of Presentation We operate on a 52- or 53-week fiscal year ending on the Sunday closest to October 31. Our fiscal year ending October 29, 2017, or fiscal year 2017, is a 52-week fiscal year. The first quarter of our fiscal year 2017 ended on January 29, 2017, the second quarter ends on April 30, 2017 and the third quarter ends on July 30, 2017. Our fiscal year ended October 30, 2016, or fiscal year 2016, was also a 52-week fiscal year. The accompanying condensed consolidated financial statements of Broadcom and the Partnership include the accounts of Broadcom and the Partnership, respectively, and their subsidiaries, and have been prepared by us in accordance with generally accepted accounting principles in the United States, or GAAP, for interim financial information. The financial information included herein is unaudited, and reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The October 30, 2016 condensed consolidated balance sheet data were derived from Broadcom’s audited consolidated financial statements included in Broadcom’s Annual Report on Form 10-K for fiscal year 2016, as filed with the Securities and Exchange Commission, or SEC, but do not include all disclosures required by GAAP. All intercompany transactions and balances have been eliminated in consolidation. As a result of Broadcom’s controlling interest in the Partnership, we consolidate the financial results of the Partnership and present a noncontrolling interest for the portion of the Partnership we do not own in our condensed consolidated financial statements. Net income attributable to noncontrolling interest in the condensed consolidated statements of operations represents the portion of income attributable to the economic interest in the Partnership owned by the Limited Partners. The accompanying condensed consolidated financial statements include the results of operations of BRCM and other acquisitions commencing as of their respective acquisition dates. The operating results for the fiscal quarter ended January 29, 2017 are not necessarily indicative of the results that may be expected for fiscal year 2017, or for any other future period. Significant Accounting Policies Use of estimates. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods. Recently Adopted Accounting Guidance In the first quarter of fiscal year 2017, we early adopted an accounting standards update issued by the Financial Accounting Standards Board, or FASB, in March 2016 that simplifies the accounting for certain aspects of stock-based payments to employees. The standard eliminates (i) the requirement to report excess tax benefits and certain tax deficiencies related to share-based payment transactions as additional paid-in capital and (ii) the requirement that excess tax benefits be realized before companies can recognize them. The standard requires a modified-retrospective transition method by means of a cumulative-effect adjustment as of the beginning of the period in which the guidance is adopted. As a result of adoption, we recognized a $42 million tax benefit as a discrete item for the first quarter of fiscal year 2017, a $47 million cumulative-effect adjustment to reduce our accumulated deficit and a $3 million cumulative-effect adjustment to increase our noncontrolling interest for previously unrecognized excess tax benefits as of October 30, 2016. In connection with the adoption, we elected to present excess tax benefits within operating activities on the statement of cash flows prospectively and we continued our existing practice of estimating forfeitures. Recent Accounting Guidance Not Yet Adopted In October 2016, the FASB issued updated guidance related to the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory. This guidance will be effective for the first quarter of our fiscal year 2019; however, early adoption is permitted. The adoption of this guidance will increase our income tax provision for periods in which we perform intra-entity transfers. In August 2016, the FASB issued guidance related to the classification of certain transactions on the statement of cash flows. This guidance will be effective for the first quarter of our fiscal year 2019; however, early adoption is permitted. We will present our statement of cash flows in accordance with this guidance for transactions occurring subsequent to adoption. In February 2016, the FASB issued guidance related to the accounting for leases, which among other things, requires a lessee to recognize lease assets and lease liabilities on the balance sheet for operating leases. This guidance will be effective for the first quarter of our fiscal year 2020. The new guidance is required to be applied using a modified retrospective approach. We are currently evaluating the impact that this guidance will have on our condensed consolidated financial statements. In August 2015, the FASB deferred the effective date of the guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This guidance will be effective for the first quarter of our fiscal year 2019. Early adoption is permitted, but not before the first quarter of our fiscal year 2018. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. In addition, in 2016, the FASB issued amendments to clarify the implementation guidance for principal versus agent considerations, identifying performance obligations and the accounting for licenses of intellectual property, and narrow-scope improvements and practical expedients. We have not yet selected a transition method and are currently evaluating the impact of this guidance on our condensed consolidated financial statements. |
Acquisition |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 29, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Acquisition of Broadcom Corporation Our results of continuing operations for the fiscal quarter ended January 29, 2017 include $2,301 million of net revenue attributable to BRCM. It is impracticable to determine the effect on net income attributable to BRCM for the periods presented as we immediately integrated BRCM into our ongoing operations. Unaudited Pro Forma Information The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if BRCM had been acquired as of the beginning of fiscal year 2015. The unaudited pro forma financial information for the fiscal quarter ended January 31, 2016 combined the historical results of Avago for the fiscal quarter ended January 31, 2016 and the historical results of BRCM for the three months ended December 31, 2015, representing BRCM’s previous reporting period prior to the Acquisition Date. The pro forma information includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired, adjustments to share-based compensation expense, the purchase accounting effect on inventory acquired, interest expense for the additional indebtedness incurred to complete the acquisition, restructuring charges in connection with the acquisition and acquisition costs. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2015 or of the results of future operations of the combined business. Consequently, actual results will differ from the unaudited pro forma information presented below (in millions, except for per share amounts):
Pending Acquisition of Brocade Communications Systems, Inc. On November 2, 2016, we entered into an Agreement and Plan of Merger, or the Brocade Agreement, by and among Broadcom, BRCM, Brocade Communications Systems, Inc., a Delaware corporation, or Brocade, and Bobcat Merger Sub, Inc., a Delaware corporation and a direct wholly owned subsidiary of BRCM, or Merger Sub. On December 18, 2016, BRCM assigned all of its rights and obligations under the Brocade Agreement and transferred all of the issued and outstanding capital stock of Merger Sub to LSI Corporation, or LSI. The Brocade Agreement provides that, upon the terms and subject to the conditions set forth therein, Merger Sub will merge with and into Brocade with Brocade as the surviving corporation, or the Brocade Acquisition. As a result of the Brocade Acquisition, Brocade will become an indirect subsidiary of Broadcom and the Partnership. Under the Brocade Agreement, at the effective time of the Brocade Acquisition, each issued and outstanding share of Brocade common stock held by Brocade stockholders who do not perfect their appraisal rights with respect to the Brocade Acquisition will be converted into the right to receive $12.75 in cash, without interest. As of November 2, 2016, the Brocade Acquisition was valued at approximately $5.5 billion. We intend to finance the transaction with cash on hand from both companies and new debt financing. We will also assume certain vested (to the extent not in-the-money) and all unvested Brocade stock options, restricted stock units, or RSUs, and performance stock units held by continuing employees and service providers. All vested in-the-money Brocade stock options, after giving effect to any acceleration, and all other RSUs and performance stock units will be cashed out at the effective time of the Brocade Acquisition. Consummation of the Brocade Acquisition is subject to the satisfaction or waiver of customary closing conditions, including the expiration or termination of the waiting period under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, the receipt of regulatory clearance under certain other laws and the absence of certain pending governmental litigation with respect to the transactions contemplated by the Brocade Agreement. The Brocade Agreement contains certain termination rights for us and Brocade, and further provides that, upon termination of the Brocade Agreement under certain specified circumstances, Brocade will be obligated to pay us a termination fee of $195 million. Under the Brocade Agreement, Brocade has agreed to cooperate with us to facilitate the sale, disposition or other transfer of its IP Networking business, including its recently acquired Ruckus Wireless business. The consummation of the Brocade Acquisition is not conditioned on the divestiture of Brocade’s IP Networking business. On February 22, 2017, we announced our agreement to sell a portion of Brocade’s IP Networking business, including the Ruckus Wireless and ICX Switch businesses, to ARRIS International plc for cash consideration of $800 million, plus the additional cost of unvested assumed employee stock awards. The closing is subject to regulatory approvals in various jurisdictions and other customary closing conditions but does not require shareholder approval by either company, is not subject to any financing conditions, and is currently expected to close approximately one month following the closing of the Brocade Acquisition. This transaction is contingent on the closing of the Brocade Acquisition. We currently expect the Brocade Acquisition to close in our third fiscal quarter ending July 30, 2017. |
Supplemental Financial Information |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information | Supplemental Financial Information Cash and Cash Equivalents Cash equivalents included $1,603 million and $1,022 million of time deposits as of January 29, 2017 and October 30, 2016, respectively. The carrying value of time deposits approximates fair value due to the short-term nature of the instruments. Inventory Inventory consists of the following (in millions):
Accrued Rebate Activity The following table summarizes activities related to accrued rebates included in other current liabilities on our condensed consolidated balance sheets (in millions):
Other Long-Term Liabilities Other long-term liabilities consist of the following (in millions):
________________________________ (a) Includes accrued interest and penalties. Supplemental Cash Flow Information The following table summarizes supplement cash flow information (in millions):
At January 29, 2017 and October 30, 2016, we had $116 million and $159 million, respectively, of unpaid purchases of property, plant and equipment included in accounts payable and other current liabilities. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table summarizes changes in goodwill by segment (in millions):
During the fiscal quarter ended January 29, 2017, we made adjustments to certain tax balances related to the Broadcom Merger, resulting in a $32 million decrease in goodwill. Intangible Assets Intangible assets consist of the following (in millions):
Based on the amount of intangible assets subject to amortization at January 29, 2017, the expected amortization expense for each of the next five fiscal years and thereafter is as follows (in millions):
The weighted-average amortization periods remaining by intangible asset category as of January 29, 2017 were as follows (in years):
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Net Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | Net Income Per Share Broadcom Basic net income per share is computed by dividing net income attributable to ordinary shares by the weighted-average number of Broadcom ordinary shares outstanding during the period. Diluted net income per share is computed by dividing net income attributable to ordinary shares and, if the Partnership REUs are dilutive, net income attributable to noncontrolling interest by the weighted-average number of Broadcom ordinary shares and potentially dilutive share equivalents outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money share options, RSUs and employee share purchase rights under the Amended and Restated Broadcom Limited Employee Share Purchase Plan, or ESPP (together referred to as equity awards). Diluted shares outstanding also include Broadcom ordinary shares issuable upon exchange of the Partnership REUs (refer to Note 8. “Partners’ Capital” for additional information) for the fiscal quarter ended January 29, 2017. The dilutive effect of equity awards is calculated based on the average share price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising share options and to purchase shares under the ESPP and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase ordinary shares. For the fiscal quarter ended January 31, 2016, the amount of tax benefits that would be recognized when equity awards become deductible for income tax purposes was also assumed to be used to repurchase ordinary shares. The dilutive effect of the Partnership REUs is calculated using the if-converted method. The if-converted method assumes that the Partnership REUs were converted at the beginning of the reporting period. There were no material antidilutive equity awards for the fiscal quarters ended January 29, 2017 or January 31, 2016. The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented (in millions, except per share data):
The Partnership Income per unit for the Partnership is not required to be presented as its Common Units and Partnership REUs are not publicly traded. |
Borrowings |
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Borrowings | Borrowings Senior Notes On January 19, 2017, two Broadcom subsidiaries, BRCM and Broadcom Cayman Finance Limited, or the Co-Issuers, completed the issuance and sale of senior unsecured notes, or Senior Notes, in an aggregate principal amount of $13,550 million. Each series of Senior Notes is fully and unconditionally guaranteed, jointly and severally, on an unsecured, unsubordinated basis by Broadcom, the Partnership, and BC Luxembourg S.à r.l., an indirect subsidiary of Broadcom, or collectively, the Guarantors, subject to certain release conditions described in the indenture governing the Senior Notes, or the Indenture. The Co-Issuers may redeem all or a portion of the Senior Notes at any time prior to their maturity, subject to a specified make-whole premium as set forth in the Indenture. In the event of a change of control triggering event, each holder of Senior Notes will have the right to require us to purchase for cash all or a portion of their Senior Notes at a redemption price of 101% of the aggregate principal amount of such Senior Notes plus accrued and unpaid interest. The Indenture also contains covenants that restrict, among other things, the ability of Broadcom and its subsidiaries to incur additional secured debt and consummate certain sale and leaseback transactions, and the ability of the Co-Issuers and the Guarantors to merge, consolidate or sell all or substantially all of their assets. The Co-Issuers used the net proceeds, plus cash on hand, to repay all of the term loans outstanding under our guaranteed, collateralized credit agreement, or the 2016 Credit Agreement, dated February 1, 2016, in the aggregate amount of $13,555 million and to pay $107 million of related fees and expenses. Each series of Senior Notes will pay interest semi-annually in cash in arrears on January 15 and July 15 of each year, beginning on July 15, 2017. The Senior Notes are recorded as long-term debt, net of original issue discount and capitalized debt issuance costs. The discount and debt issuance costs associated with the issuance of the Senior Notes are amortized to interest expense over their respective terms. The effective interest rates for fixed-rate debt include the stated interest on the notes and the accretion of the original issue discount. As a result of the repayment of the outstanding term loans under the 2016 Credit Agreement during the fiscal quarter ended January 29, 2017, we wrote-off $159 million of debt issuance costs, which were included in loss on extinguishment of debt in the condensed consolidated statements of operations. In connection with the issuance of the Senior Notes, the Co-Issuers and Guarantors entered into a registration rights agreement pursuant to which they agreed to use commercially reasonable efforts to file one or more registration statements pursuant to the Securities Act of 1933, as amended, to exchange each series of Senior Notes for new notes, with terms substantially identical in all material respects to such series of Senior Notes and to cause the registration statement to be declared effective on or before July 13, 2018. If the Co-Issuers and Guarantors do not comply with these obligations with respect to a series of the Senior Notes, they will be subject to interest penalties. The following table summarizes details of our Senior Notes:
Revolving Credit Facility The 2016 Credit Agreement also provides for a revolving credit facility, or the 2016 Revolving Credit Facility, that permits us to borrow from time to time in an aggregate principal amount of up to $500 million for working capital and other corporate purposes, including swingline loans of up to $150 million in the aggregate and for the issuance of letters of credit of up to $100 million in the aggregate, which, in the case of swingline loans and letters of credit, reduce the available borrowing capacity under the 2016 Revolving Credit Facility on a dollar for dollar basis. As of January 29, 2017, there were no borrowings outstanding under the 2016 Revolving Credit Facility or any material outstanding letters of credit. As of January 29, 2017, the unamortized debt issuance costs related to the 2016 Revolving Credit Facility were $8 million and were included in other long-term assets on the condensed consolidated balance sheet. We were in compliance with all of the covenants described in the 2016 Credit Agreement as of January 29, 2017. Assumed Senior Notes The following table presents the details of the outstanding long-term debt assumed in connection with the acquisition of BRCM, or the Assumed Senior Notes:
Fair Value of Debt As of January 29, 2017, the estimated fair value of the Senior Notes and Assumed Senior Notes was $13,655 million. The fair value of the Senior Notes and Assumed Senior Notes is classified as Level 2 as we use quoted prices from less active markets. Future Principal Payments of Debt The future scheduled principal payments for the outstanding Senior Notes and Assumed Senior Notes as of January 29, 2017 were as follows (in millions):
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Shareholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | Shareholders’ Equity Noncontrolling Interest Noncontrolling interest represents equity interests in consolidated subsidiaries that are not attributable to Broadcom. As of January 29, 2017, the Limited Partners held a noncontrolling interest of approximately 5% in the Partnership through their ownership of 23 million Partnership REUs, issued to former BRCM shareholders. Pursuant to the terms of the Partnership Agreement, each Partnership REU is entitled to distributions from the Partnership in an amount equal to any dividends or distributions that Broadcom declares and pays with respect to Broadcom ordinary shares. In addition, each holder of a Partnership REU is entitled to vote with respect to matters on which holders of Broadcom ordinary shares are entitled to vote by directing the voting trustee to vote one non-economic voting preference share for each Partnership REU they hold. On January 30, 2017, Broadcom registered 23 million ordinary shares to allow for Limited Partners to exchange their Partnership REUs pursuant to the Partnership Agreement. Effective February 1, 2017, subject to certain additional requirements and potential deferrals as set forth in the Partnership Agreement, Limited Partners have the right to require the Partnership to repurchase some or all of such Limited Partner’s Partnership REUs in consideration for, as determined by Broadcom in its sole discretion, either one Broadcom ordinary share or a cash amount as determined under the Partnership Agreement for each Partnership REU submitted for repurchase. Broadcom adjusts the net income in its condensed consolidated statements of operations to exclude the noncontrolling interest’s proportionate share of the results. In addition, Broadcom presents the proportionate share of equity attributable to the noncontrolling interest as a separate component of shareholders’ equity. Dividends Broadcom paid cash dividends of $1.02 and $0.44 per ordinary share, or $408 million and $122 million in aggregate, during the fiscal quarters ended January 29, 2017 and January 31, 2016, respectively. Share-Based Compensation Expense The following table summarizes share-based compensation expense reported in continuing operations related to share-based awards granted to employees and directors for the periods presented (in millions):
Equity Incentive Award Plans A summary of RSU activity under Broadcom’s equity incentive award plans is as follows (in millions, except years and per share amounts):
________________________________ * Represents less than 0.5 million shares. Total unrecognized compensation cost related to unvested time and market-based RSUs as of January 29, 2017 was $1,379 million, which is expected to be recognized over the remaining weighted-average service period of 2.8 years. A summary of share option activity under Broadcom’s equity incentive award plans is as follows (in millions, except years and per share amounts):
________________________________ * Represents less than 0.5 million shares. The total unrecognized compensation cost of time and market-based share options granted but not yet vested as of January 29, 2017 was $47 million, which is expected to be recognized over the remaining weighted-average service period of 1.3 years. |
Partners' Capital |
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Broadcom Cayman L.P. [Member] | |
Stockholders' Equity Note Disclosure [Text Block] | Partners’ Capital Effective as of February 1, 2017, subject to certain additional requirements and potential deferrals as set forth in the Partnership Agreement, Limited Partners have the right to require the Partnership to repurchase some or all of such Limited Partner’s Partnership REUs in consideration for, as determined by Broadcom in its sole discretion, either one Broadcom ordinary share or a cash amount as determined under the Partnership Agreement for each Partnership REU submitted for repurchase. Share-Based Compensation Expense Share-based incentive awards are provided to employees, directors and other persons who provide services to our subsidiaries under the terms of various Broadcom equity incentive plans. Refer to Note 7. “Shareholders’ Equity” for further details. Capital Transactions with General Partner During the fiscal quarter ended January 29, 2017, the Partnership had capital transactions with the General Partner of $61 million, which consisted of capital contributions by the General Partner to the Partnership. Distributions The Partnership paid a cash distribution of $408 million to Broadcom, as General Partner, and a cash distribution of $1.02 per Partnership REU, or $23 million in aggregate, to the Limited Partners during the fiscal quarter ended January 29, 2017, in accordance with the Partnership Agreement. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the fiscal quarter ended January 29, 2017, our income tax provision was $10 million compared to $17 million for the fiscal quarter ended January 31, 2016. This decrease was due to a discrete benefit from the recognition of $42 million of excess tax benefits on share-based awards that were vested and/or exercised during the fiscal quarter ended January 29, 2017. This was partially offset by an increase in tax provision caused by a change in the jurisdictional mix of income from continuing operations before income taxes. Uncertain Tax Positions We are subject to Singapore income tax examination for fiscal years 2011 and later. Certain of our acquired companies are subject to tax examinations in major jurisdictions outside Singapore for fiscal years 2010 and later. We believe it is possible that we may recognize up to $12 million of our existing unrecognized tax benefits within the next 12 months as a result of lapses of statute of limitations for certain audit periods. |
Segment Information |
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Segment Information | Segment Information Reportable Segments We have four reportable segments: wired infrastructure, wireless communications, enterprise storage and industrial & other. These segments align with our principal target markets. The segments represent components for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer of Broadcom, who has been identified as the Chief Operating Decision Maker, or the CODM, as defined by authoritative guidance on segment reporting, in determining how to allocate resources and evaluate performance. The segments are determined based on several factors, including client base, homogeneity of products, technology, delivery channels and similar economic characteristics. Our CODM assesses the performance of each segment and allocates resources to those segments based on net revenue and operating income and does not evaluate operating segments using discrete asset information. Operating income by segment includes items that are directly attributable to each segment. Operating income by segment also includes shared expenses such as global operations, including manufacturing support, logistics and quality control, which are allocated primarily based on headcount, expenses associated with our globally integrated support organizations, such as sales and corporate marketing functions, as well as finance, information technology, human resources, legal and related corporate infrastructure costs, along with certain benefit related expenses, which are allocated primarily based on a percentage of revenue, and facilities allocated based on square footage. Unallocated Expenses Unallocated expenses include amortization of acquisition-related intangible assets, share-based compensation expense, restructuring, impairment and disposal charges, acquisition-related costs, including charges related to inventory step-up to fair value, and other costs, which are not used in evaluating the results of, or in allocating resources to, our segments. Acquisition-related costs also include transaction costs and any costs directly related to the acquisition and integration of acquired businesses. Depreciation expense directly attributable to each reportable segment is included in operating income for each segment. However, the CODM does not evaluate depreciation expense by operating segment and, therefore, it is not separately presented. There was no inter-segment revenue. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The following tables present our net revenue and operating income by reportable segment for the periods presented (in millions):
Significant Customer Information We sell our products through our direct sales force and a select network of distributors globally. One direct customer accounted for 14% and 18% of our net accounts receivable balance at January 29, 2017 and October 30, 2016, respectively. During the fiscal quarter ended January 29, 2017, one direct customer represented 15% of our net revenue. During the fiscal quarter ended January 31, 2016, two direct customers represented 15% and 10% of our net revenue, respectively. The majority of the revenue from these customers was included in our wireless communications and wired infrastructure segments. |
Related Party Transactions |
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Related Party Transactions | Related Party Transactions During the fiscal quarters ended January 29, 2017 and January 31, 2016, in the ordinary course of business, we purchased from, or sold to, entities of which one of our directors also serves or served as a director, or entities that are otherwise affiliated with one of our directors. The following tables summarize the transactions with these parties for the indicated periods (for the portion of such period that they were considered related) (in millions):
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Commitments and Contingencies |
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Commitments and Contingencies | Commitments and Contingencies Commitments The following table summarizes contractual obligations and commitments as of January 29, 2017 that materially changed from the end of fiscal 2016 (in millions):
Debt Principal, Interest and Fees. Represents principal and interest on borrowings under the Senior Notes and Assumed Senior Notes, as well as commitment fees payable under the 2016 Credit Agreement. Purchase Commitments. Represents unconditional purchase obligations that include agreements to purchase goods or services, primarily inventory, that are enforceable and legally binding on us and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions, and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable without penalty. Cancellation for outstanding purchase orders for capital expenditures in connection with internal fabrication facility expansion and construction of our new campuses is generally allowed but requires payment of all costs incurred through the date of cancellation and, therefore, cancelable purchase orders for these capital expenditures are included in the table above. Due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits at January 29, 2017, we are unable to reliably estimate the timing of cash settlement with the respective taxing authority. Therefore, $1,060 million of unrecognized tax benefits and accrued interest classified within other long-term liabilities on our condensed consolidated balance sheet as of January 29, 2017 have been excluded from the contractual obligations table above. There were no other substantial changes to our contractual commitments during the first quarter of fiscal year 2017 from those disclosed in Broadcom’s 2016 Annual Report on Form 10-K. Contingencies From time to time, we are involved in litigation that we believe is of the type common to companies engaged in our line of business, including commercial disputes, employment issues and disputes involving claims by third parties that our activities infringe their patent, copyright, trademark or other intellectual property rights. Legal proceedings are often complex, may require the expenditure of significant funds and other resources, and the outcome of litigation is inherently uncertain, with material adverse outcomes possible. Intellectual property claims generally involve the demand by a third-party that we cease the manufacture, use or sale of the allegedly infringing products, processes or technologies and/or pay substantial damages or royalties for past, present and future use of the allegedly infringing intellectual property. Claims that our products or processes infringe or misappropriate any third-party intellectual property rights (including claims arising through our contractual indemnification of our customers) often involve highly complex, technical issues, the outcome of which is inherently uncertain. Moreover, from time to time we pursue litigation to assert our intellectual property rights. Regardless of the merit or resolution of any such litigation, complex intellectual property litigation is generally costly and diverts the efforts and attention of our management and technical personnel. Lawsuits Relating to the Brocade Acquisition On December 13, 2016, December 15, 2016, December 21, 2016, January 5, 2017 and January 18, 2017, six putative class action complaints were filed in the United States District Court for the Northern District of California, or the U.S. Northern District Court, captioned Steinberg v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7081-EMC, Gross v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7173-EJD, Jha v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7270-HRL, Bragan v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7271-JSD, Chuakay v. Brocade Communications Systems, Inc., et al., No. 3:17-cv-0058-PJH, and Mathew v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7271-HSG, respectively. The Steinberg, Bragan and Mathew complaints name as defendants Brocade, the members of Brocade’s board of directors, Broadcom Limited, BRCM, and Merger Sub. The Gross, Jha and Chuakay complaints name as defendants Brocade and the members of Brocade’s board of directors. All of the complaints assert claims under Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder. The complaints allege, among other things, that the board of directors of Brocade failed to provide material information and/or omitted material information from the Preliminary Proxy Statement filed with the SEC on December 6, 2016 by Brocade. The complaints seek to enjoin the closing of the transaction between Brocade and Broadcom, as well as certain other equitable and declaratory relief and attorneys’ fees and costs. On January 10, 2017, January 27, 2017 and February 15, 2017, the U.S. Northern District Court granted motions to relate the cases, all of which are now related to the Steinberg action and before the Honorable Judge Edward Chen. On January 11, 2017, Plaintiff Jha filed a motion for a preliminary injunction, which was subsequently withdrawn on January 18, 2017. We believe these claims are all entirely without merit and intend to vigorously defend these actions. Lawsuits Relating to Tessera, Inc. On May 23, 2016, Tessera Technologies, Inc., Tessera, Inc., or Tessera, and Invensas Corp., or Invensas or collectively, the Complainants, filed a complaint to institute an investigation with the U.S. International Trade Commission, or the U.S. ITC. The Complainants allege infringement by Broadcom, BRCM, Avago and Avago Technologies U.S. Inc., or Avago U.S. or collectively, the Respondents, of three patents relating to semiconductor packaging and semiconductor manufacturing technology. The downstream respondents, which are customers of the Respondents, are Arista Networks, Inc., ARRIS International plc, ARRIS Group, Inc., ARRIS Technology, Inc., ARRIS Enterprises LLC, ARRIS Solutions, Inc., Pace Ltd., Pace Americas, LLC, Pace USA, LLC, ASUSteK Computer Inc., ASUS Computer International, Comcast Cable Communications, LLC, Comcast Cable Communications Management, LLC, Comcast Business Communications, LLC, HTC Corporation, HTC America, Inc., NETGEAR, Inc., Technicolor S.A., Technicolor USA, Inc., and Technicolor Connected Home USA LLC, or collectively, the Downstream Respondents. On July 20, 2016, the U.S. ITC instituted the investigation, or the ITC Investigation. Complainants seek the following relief: (1) a permanent limited exclusion order excluding from importation into the U.S. all of the Respondents' semiconductor devices and semiconductor device packages and Downstream Respondents’ products containing Respondents’ semiconductor devices and semiconductor device packages that infringe one or more of the three patents subject to the ITC Investigation and (2) a permanent cease and desist order prohibiting the Respondents and Downstream Respondents and related companies from importing, marketing, advertising, demonstrating, warehousing inventory for distribution, offering for sale, selling, qualifying for use in the products of others, distributing, or using the Respondents' semiconductor devices and semiconductor device packages and Downstream Respondents’ products containing Respondents’ semiconductor devices and semiconductor device packages that infringe one or more of the three patents subject to the ITC Investigation. On May 23, 2016, Tessera and Invensas filed a complaint against BRCM in the U.S. District Court for the District of Delaware, Case No. 1-16-cv-00379, alleging infringement of the three patents subject to the ITC Investigation. The complaint seeks compensatory damages in an unspecified amount, as well as an award of reasonable attorneys’ fees, interest, and costs. This case is stayed pending resolutions of the ITC Investigation. On May 23, 2016, Tessera and Tessera Advanced Technologies, Inc. filed a complaint against BRCM in the U.S. District Court for the District of Delaware, Case No. 1-16-cv-00380, alleging infringement of four patents relating to semiconductor packaging and circuit technologies. On June 19, 2016, the complaint was amended to add three more patents relating to semiconductor packaging technologies for a total of seven patents in this matter. The complaint seeks compensatory damages in an unspecified amount, as well as an award of reasonable attorneys’ fees, interest, and costs. On May 23, 2016, Invensas filed a Writ of Summons against Broadcom, BRCM, Broadcom Netherlands B.V. and Broadcom Communications Netherlands B.V. in the Hague District Court in the Netherlands, Case No. L1422381, alleging infringement of a single European patent that is a foreign counterpart to one of the patents subject to the ITC Investigation, or the European Patent. The named defendants also include distributors EBV Elektronik GmbH, Arrow Central Europe GmbH, and Mouser Electronics Netherlands B.V. The requested relief includes a cease-and-desist order and damages in an unspecified amount. On May 23, 2016, Invensas also filed a complaint against each of (i) Broadcom Germany GmbH and its German distributors, Case No. 7 O 97/16, and (ii) Broadcom and BRCM, Case No. 7 O 98/16, in the Mannheim District Court in Germany, alleging infringement of the European Patent. The required relief includes damages in an unspecified amount and an injunction preventing the sale of the accused products. On February 3, 2017, the Mannheim District Court held a hearing to determine infringement and indicated that it would issue its decision on March 17, 2017. On November 7, 2016, Invensas filed a complaint against Avago, Avago U.S., Emulex Corporation, or Emulex, LSI and PLX Technology, Inc., or PLX, in the U.S. District Court for the District of Delaware, Case No. 1-16-cv-01033, alleging infringement of two of the patents subject to the ITC Investigation. The complaint seeks compensatory damages in an unspecified amount, as well as an award of reasonable attorneys’ fees, interest, and costs. On November 7, 2016, Tessera and Invensas filed a complaint against Avago, Avago U.S., and Avago Technologies Wireless (U.S.A.) Manufacturing Inc. in the U.S. District Court for the District of Delaware, Case No. 1-16-cv-01034, alleging infringement of two patents relating to semiconductor packaging technology. On January 31, 2017, Tessera and Invensas amended the complaint in this matter and added three additional patents related to semiconductor packaging technology. The complaint seeks compensatory damages in an unspecified amount, as well as an award of reasonable attorneys’ fees, interest, and costs. We intend to vigorously defend these actions. Lawsuits Relating to the Acquisition of BRCM Since the announcement of the Broadcom Merger, 11 putative class action complaints have been filed by and purportedly on behalf of alleged BRCM shareholders. Two putative class action complaints were filed in the United States District Court for the Central District of California, or the U.S. Central District Court, captioned: Wytas, et al. v. McGregor, et al., Case No. 8:15-cv-00979, filed on June 18, 2015; and Yassian, et al. v. McGregor, et al., Case No. 8:15-cv-01303, filed on August 15, 2015, or the Federal Actions. On September 2, 2015, plaintiffs in the Wytas, et al. v. McGregor, et al. matter filed an amended complaint adding claims under the U.S. federal securities laws. One putative class action complaint was filed in the Superior Court of the State of California, County of Santa Clara, captioned Jew v. Broadcom Corp., et al., Case No. 1-15-CV-281353, filed June 2, 2015. Eight putative class action complaints were filed in the Superior Court of the State of California, County of Orange, captioned: Xu v. Broadcom Corp., et al., Case No. 30-2015-00790689-CU-SL-CXC, filed June 1, 2015; Freed v. Broadcom Corp., et al., Case No. 30-2015-00790699-CU-SL-CXC, filed June 1, 2015; N.J. Building Laborers Statewide Pension Fund v. Samueli, et al., Case No. 30-2015-00791484-CU-SL-CXC, filed June 4, 2015; Yiu v. Broadcom Corp., et al., Case No. 30-2015-00791490-CU-SL-CXC, filed June 4, 2015; Yiu, et al. v. Broadcom Corp., et al., Case No. 30-2015-00791762-CU-BT-CXC, filed June 5, 2015; Yassian, et al. v. McGregor, et al., Case No. 30-2015-00793360-CU-SL-CXC, filed June 15, 2015; Seafarers’ Pension Plan v. Samueli, et al., Case No. 30-2015-00794492-CU-SL-CXC, filed June 19, 2015; and Engel v. Broadcom Corp., et al., Case No. 30-2015-00797343-CU-SL-CXC, filed on July 2, 2015 (together with Jew v. Broadcom Corp., et al., the State Actions). The Federal Actions and State Actions name as defendants, among other parties, BRCM, members of BRCM’s board of directors and Avago, and allege, among other things, breaches of fiduciary duties and aiding and abetting those alleged breaches. Additionally, the Federal Actions allege violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and SEC Rule 14-a9. On August 14, 2015, the Superior Court of the State of California, County of Orange, issued an order coordinating and consolidating the State Actions, captioned Broadcom Shareholder Cases, JCCP 4834. On September 18, 2015, the U.S. Central District Court consolidated the Federal Actions under the caption In re Broadcom Corporation Stockholder Litigation, Case No. 8:15-cv-00979. On September 25, 2015, the Superior Court of the State of California, County of Orange, stayed the State Actions pending the outcome of the Federal Actions. On October 28, 2015, BRCM supplemented its disclosures, and filed additional proxy materials with the SEC. On November 10, 2015, BRCM shareholders voted to approve the Broadcom Merger. On November 16, 2015, the U.S. Central District Court appointed lead plaintiffs and lead counsel in the Federal Actions. On January 15, 2016, lead plaintiffs in the Federal Actions filed a Second Amended Consolidated Class Action Complaint, or the Federal Consolidated Complaint, which names as defendants, among other parties, members of BRCM’s board of directors and Avago, and alleges breaches of fiduciary duties and aiding and abetting those alleged breaches, as well as violation of Sections 14(a) and 20(a) of the Exchange Act and SEC Rule 14-a9. On February 1, 2016, we completed the acquisition of BRCM. On September 23, 2016, the parties entered into a Stipulation and Agreement of Compromise and Settlement, or the Stipulation, which has been filed with the U.S. Central District Court. Pursuant to the Stipulation, BRCM agreed to confirm certain facts concerning the Broadcom Merger. Additionally, defendants agreed to pay or cause to be paid attorneys’ fees and expenses as may be awarded by the U.S. Central District Court to plaintiffs’ counsel for their efforts in prosecuting the litigation, as well as the costs of administering the settlement. The Stipulation provides that the settlement is subject to certain conditions, including final approval of the settlement and final certification of a settlement class by the U.S. Central District Court. The Stipulation includes a release of all claims against defendants relating to or arising from the litigation. On December 2, 2016, the U.S. Central District Court granted preliminary approval of the settlement. On February 27, 2017, the U.S. Central District Court granted final approval of the settlement. The settlement did not have an impact on our financial statements. We believe that the claims in the litigation, including the Federal Consolidated Complaint, are without merit and that no misconduct or damages occurred. Defendants entered into the settlement to eliminate the burden, distraction, and expense of further litigation. Lawsuits Relating to the Acquisition of Emulex On March 3, 2015, two putative shareholder class action complaints were filed in the Court of Chancery of the State of Delaware, or the Delaware Court of Chancery, against Emulex, its directors, Avago Technologies Wireless (U.S.A.) Manufacturing Inc., or AT Wireless, and Emerald Merger Sub, Inc., or Merger Sub, captioned as follows: James Tullman v. Emulex Corporation, et al., Case No. 10743-VCL (Del. Ch.); Moshe Silver ACF/Yehudit Silver U/NY/UTMA v. Emulex Corporation, et al., Case No. 10744-VCL (Del. Ch.). On March 11, 2015, a third complaint was filed in the Delaware Court of Chancery, captioned Hoai Vu v. Emulex Corporation, et al., Case No. 10776-VCL (Del. Ch.). The complaints alleged, among other things, that Emulex’s directors breached their fiduciary duties by approving the Agreement and Plan of Merger, dated February 25, 2015, by and among AT Wireless, Merger Sub and Emulex, or the Merger Agreement, and that AT Wireless and Merger Sub aided and abetted these alleged breaches of fiduciary duty. The complaints sought, among other things, either to enjoin the transaction or to rescind it following its completion, as well as damages, including attorneys’ and experts’ fees. The Delaware Court of Chancery has entered an order consolidating the three Delaware actions under the caption In re Emulex Corporation Stockholder Litigation, Consolidated C.A. No. 10743-VCL. On May 5, 2015, we completed our acquisition of Emulex. On June 5, 2015, the Court of Chancery dismissed the consolidated action without prejudice. On April 8, 2015, a putative class action complaint was filed in the U.S. Central District Court, entitled Gary Varjabedian, et al. v. Emulex Corporation, et al., No. 8:15-cv-554-CJC-JCG. The complaint names as defendants Emulex, its directors, AT Wireless and Merger Sub, and purported to assert claims under Sections 14(d), 14(e) and 20(a) of the Exchange Act. The complaint alleged, among other things, that the board of directors of Emulex failed to provide material information and/or omitted material information from the Solicitation/Recommendation Statement on Schedule 14D-9 filed with the SEC on April 7, 2015 by Emulex, together with the exhibits and annexes thereto. The complaint sought to enjoin the tender offer to purchase all of the outstanding shares of Emulex common stock, as well as certain other equitable relief and attorneys’ fees and costs. On July 28, 2015, the U.S. Central District Court issued an order appointing the lead plaintiff and approving lead counsel for the putative class. On September 9, 2015, plaintiff filed a first amended complaint seeking rescission of the merger, unspecified money damages, other equitable relief and attorneys’ fees and costs. On October 13, 2015, defendants moved to dismiss the first amended complaint, which the U.S. Central District Court granted with prejudice on January 13, 2016. Plaintiff filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit, or the Ninth Circuit Court, on January 15, 2016. The appeal is captioned Gary Varjabedian, et al. v. Emulex Corporation, et al., No. 16-55088. On June 27, 2016, the Plaintiff-Appellant filed his opening brief, on August 17 and August 22, 2016, the Defendants-Appellees filed their answering briefs, and on October 5, 2016 Plaintiff-Appellant filed his reply brief. On December 16, 2016, the Ninth Circuit Court notified the parties that this case is being considered for the April 2017 Pasadena oral argument calendar. The exact date of any oral argument has not been determined at this time. We believe these claims are all entirely without merit and intend to vigorously defend these actions. Lawsuits Relating to the Acquisition of PLX In June and July 2014, four lawsuits were filed in the Superior Court for the State of California, County of Santa Clara, or Superior Court, challenging our acquisition of PLX. On July 22, 2014, the Superior Court consolidated these California actions under the caption In re PLX Technology, Inc. S’holder Litig., Lead Case No. 1-14-CV-267079 (Cal. Super. Ct., Santa Clara) and appointed lead counsel. That same day, the Superior Court also stayed the consolidated action, pending resolution of related actions filed in the Delaware Court of Chancery, described below. Also in June and July 2014, five similar lawsuits were filed in the Delaware Court of Chancery. On July 21, 2014, the Delaware Court of Chancery consolidated these Delaware actions under the caption In re PLX Technology, Inc. Stockholders Litigation, Consol. C.A. No. 9880-VCL (Del. Ch.), appointed lead plaintiffs and lead counsel, and designated an operative complaint for the consolidated action. On July 31, 2014, counsel for lead plaintiffs in Delaware informed the Delaware Court of Chancery that they would not seek a preliminary injunction, but intend to seek damages and pursue monetary remedies through post-closing litigation. Our acquisition of PLX closed on August 12, 2014. On October 31, 2014, lead plaintiffs filed a consolidated amended complaint. This complaint alleges, among other things, that PLX’s directors breached their fiduciary duties to PLX’s stockholders by seeking to sell PLX for an inadequate price, pursuant to an unfair process, and by agreeing to preclusive deal protections in the merger agreement. Plaintiffs also allege that Potomac Capital Partners II, L.P., Deutsche Bank Securities, Avago Technologies Wireless (U.S.A.) Manufacturing Inc., or AT Wireless, and Pluto Merger Sub, Inc., the acquisition subsidiary, aided and abetted the alleged fiduciary breaches. Plaintiffs also allege that PLX’s Solicitation/Recommendation statement on Schedule 14D-9, as filed with the SEC, contained false and misleading statements and/or omitted material information necessary to inform the shareholder vote. The plaintiffs seek, among other things, monetary damages and attorneys’ fees and costs. On September 3, 2015, the Delaware Court of Chancery granted motions to dismiss filed by AT Wireless, the acquisition subsidiary and two PLX directors, and denied motions to dismiss filed by several other PLX directors, Potomac Capital Partners II, L.P. and Deutsche Bank Securities. On August 17, 2016, the five remaining PLX director-defendants and Deutsche Bank Securities entered into a stipulation of partial settlement to resolve claims against all of the former PLX directors and Deutsche Bank Securities asserted in the Delaware class action. The partial settlement also provides for a release of all potential claims against AT Wireless, Pluto Merger Sub, Avago and PLX. Defendant Potomac Capital Partners II, L.P. is not a party to the settlement. This partial settlement was approved by the Delaware Court of Chancery on December 20, 2016. The Delaware class litigation is on-going. On November 9, 2016, the sole remaining defendant, Potomac Capital Partners II, L.P., filed cross-claims against the named individual director defendants and Deutsche Bank for contribution. Under various contracts and statutes, PLX may owe indemnification to each of these parties. The cross-claims are now barred according to the terms of the approved partial settlement, although Potomac Capital Partners II, L.P. might be entitled to an offset (based on contributory fault) of any damages it might owe to the class. Other Matters In addition to the matters discussed above, we are currently engaged in a number of legal actions in the ordinary course of our business. We do not believe, based on currently available facts and circumstances, that the final outcome of any pending legal proceedings, taken individually or as a whole, will have a material adverse effect on our financial condition, results of operations or cash flows. However, lawsuits may involve complex questions of fact and law and may require the expenditure of significant funds and other resources to defend. The results of litigation are inherently uncertain, and material adverse outcomes are possible. From time to time, we may enter into confidential discussions regarding the potential settlement of such lawsuits. Any settlement of pending litigation could require us to incur substantial costs and other ongoing expenses, such as future royalty payments in the case of an intellectual property dispute. During the periods presented, no material amounts have been accrued or disclosed in the accompanying condensed consolidated financial statements with respect to loss contingencies associated with any legal proceedings, as potential losses for such matters are not considered probable and ranges of losses are not reasonably estimable. These matters are subject to many uncertainties and the ultimate outcomes are not predictable. There can be no assurances that the actual amounts required to satisfy any liabilities arising from the matters described above will not have a material adverse effect on our results of operations, financial position or cash flows. Other Indemnifications As is customary in our industry and as provided for in local law in the United States and other jurisdictions, many of our standard contracts provide remedies to our customers and others with whom we enter into contracts, such as defense, settlement, or payment of judgment for intellectual property claims related to the use of our products. From time to time, we indemnify customers, as well as our suppliers, contractors, lessors, lessees, companies that purchase our businesses or assets and others with whom we enter into contracts, against combinations of loss, expense, or liability arising from various triggering events related to the sale and the use of our products, the use of their goods and services, the use of facilities and state of our owned facilities, the state of the assets and businesses that we sell and other matters covered by such contracts, usually up to a specified maximum amount. In addition, from time to time we also provide protection to these parties against claims related to undiscovered liabilities, additional product liability or environmental obligations. In our experience, claims made under such indemnifications are rare and the associated estimated fair value of the liability is not material. |
Restructuring Charges |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring, Impairment and Disposal Charges Restructuring Charges In the second quarter of fiscal year 2016, we began the implementation of cost reduction activities associated with the Broadcom Merger. In connection with these activities, we currently expect to eliminate approximately 3,200 positions from our workforce across all business and functional areas on a global basis. During the fiscal quarter ended January 29, 2017, we recognized $42 million of restructuring costs in continuing operations primarily related to employee termination costs associated with the Broadcom Merger. During the fiscal quarter ended January 31, 2016, we recognized $10 million of restructuring costs in continuing operations primarily related to employee termination costs related to the Emulex Corporation and LSI acquisitions. The following table summarizes the significant activities within, and components of, the restructuring liabilities related to continuing and discontinued operations during the fiscal quarter ended January 29, 2017 (in millions):
(a) Includes $4 million of restructuring expense related to discontinued operations recognized during the fiscal quarter ended January 29, 2017, which was included in loss from discontinued operations in our condensed consolidated statements of operations. (b) The majority of the employee termination costs balance is expected to be paid by the second quarter of fiscal year 2017. The leases and other exit costs balance is expected to be paid during the remaining terms of the leases, which extend through fiscal year 2025. Impairment and Disposal Charges During the fiscal quarter ended January 29, 2017, we recorded losses on disposal and asset impairments of $10 million primarily related to impairment charges in our wired infrastructure segment for an in-process research and development project which was abandoned as a result of the integration of BRCM. During the fiscal quarter ended January 31, 2016, we recorded losses on disposal and asset impairments of $22 million primarily related to the sale of certain fiber optics subsystem manufacturing and related assets. |
Subsequent Events |
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Jan. 29, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Cash Dividends/Distribution Declared On February 28, 2017, Broadcom’s Board of Directors declared an interim cash dividend of $1.02 per Broadcom ordinary share, payable on March 31, 2017 to shareholders of record at the close of business (Eastern Time) on March 20, 2017, or the Broadcom Dividend. As a result of the Broadcom Dividend, and pursuant to the Partnership Agreement, the Partnership will pay a cash distribution in an amount equal to the aggregate amount of the Broadcom Dividend to Broadcom, as General Partner, and a $1.02 distribution per Partnership REU, payable on March 31, 2017, to Limited Partners of record at the close of business (Eastern Time) on March 20, 2017. |
Overview, Basis of Presentation and Significant Accounting Policies (Policies) |
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Jan. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Reporting, Policy [Policy Text Block] | The segments represent components for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer of Broadcom, who has been identified as the Chief Operating Decision Maker, or the CODM, as defined by authoritative guidance on segment reporting, in determining how to allocate resources and evaluate performance. The segments are determined based on several factors, including client base, homogeneity of products, technology, delivery channels and similar economic characteristics. |
Fiscal periods | We operate on a 52- or 53-week fiscal year ending on the Sunday closest to October 31. Our fiscal year ending October 29, 2017, or fiscal year 2017, is a 52-week fiscal year. The first quarter of our fiscal year 2017 ended on January 29, 2017, the second quarter ends on April 30, 2017 and the third quarter ends on July 30, 2017. Our fiscal year ended October 30, 2016, or fiscal year 2016, was also a 52-week fiscal year. |
Basis of presentation | The accompanying condensed consolidated financial statements of Broadcom and the Partnership include the accounts of Broadcom and the Partnership, respectively, and their subsidiaries, and have been prepared by us in accordance with generally accepted accounting principles in the United States, or GAAP, for interim financial information. The financial information included herein is unaudited, and reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The October 30, 2016 condensed consolidated balance sheet data were derived from Broadcom’s audited consolidated financial statements included in Broadcom’s Annual Report on Form 10-K for fiscal year 2016, as filed with the Securities and Exchange Commission, or SEC, but do not include all disclosures required by GAAP. All intercompany transactions and balances have been eliminated in consolidation. As a result of Broadcom’s controlling interest in the Partnership, we consolidate the financial results of the Partnership and present a noncontrolling interest for the portion of the Partnership we do not own in our condensed consolidated financial statements. Net income attributable to noncontrolling interest in the condensed consolidated statements of operations represents the portion of income attributable to the economic interest in the Partnership owned by the Limited Partners. The accompanying condensed consolidated financial statements include the results of operations of BRCM and other acquisitions commencing as of their respective acquisition dates. The operating results for the fiscal quarter ended January 29, 2017 are not necessarily indicative of the results that may be expected for fiscal year 2017, or for any other future period. |
Use of estimates | Use of estimates. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods. |
Reclassification, Policy [Policy Text Block] | In the first quarter of fiscal year 2017, we early adopted an accounting standards update issued by the Financial Accounting Standards Board, or FASB, in March 2016 that simplifies the accounting for certain aspects of stock-based payments to employees. The standard eliminates (i) the requirement to report excess tax benefits and certain tax deficiencies related to share-based payment transactions as additional paid-in capital and (ii) the requirement that excess tax benefits be realized before companies can recognize them. The standard requires a modified-retrospective transition method by means of a cumulative-effect adjustment as of the beginning of the period in which the guidance is adopted. As a result of adoption, we recognized a $42 million tax benefit as a discrete item for the first quarter of fiscal year 2017, a $47 million cumulative-effect adjustment to reduce our accumulated deficit and a $3 million cumulative-effect adjustment to increase our noncontrolling interest for previously unrecognized excess tax benefits as of October 30, 2016. In connection with the adoption, we elected to present excess tax benefits within operating activities on the statement of cash flows prospectively and we continued our existing practice of estimating forfeitures. |
Recent accounting guidance | Recently Adopted Accounting Guidance In the first quarter of fiscal year 2017, we early adopted an accounting standards update issued by the Financial Accounting Standards Board, or FASB, in March 2016 that simplifies the accounting for certain aspects of stock-based payments to employees. The standard eliminates (i) the requirement to report excess tax benefits and certain tax deficiencies related to share-based payment transactions as additional paid-in capital and (ii) the requirement that excess tax benefits be realized before companies can recognize them. The standard requires a modified-retrospective transition method by means of a cumulative-effect adjustment as of the beginning of the period in which the guidance is adopted. As a result of adoption, we recognized a $42 million tax benefit as a discrete item for the first quarter of fiscal year 2017, a $47 million cumulative-effect adjustment to reduce our accumulated deficit and a $3 million cumulative-effect adjustment to increase our noncontrolling interest for previously unrecognized excess tax benefits as of October 30, 2016. In connection with the adoption, we elected to present excess tax benefits within operating activities on the statement of cash flows prospectively and we continued our existing practice of estimating forfeitures. Recent Accounting Guidance Not Yet Adopted In October 2016, the FASB issued updated guidance related to the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory. This guidance will be effective for the first quarter of our fiscal year 2019; however, early adoption is permitted. The adoption of this guidance will increase our income tax provision for periods in which we perform intra-entity transfers. In August 2016, the FASB issued guidance related to the classification of certain transactions on the statement of cash flows. This guidance will be effective for the first quarter of our fiscal year 2019; however, early adoption is permitted. We will present our statement of cash flows in accordance with this guidance for transactions occurring subsequent to adoption. In February 2016, the FASB issued guidance related to the accounting for leases, which among other things, requires a lessee to recognize lease assets and lease liabilities on the balance sheet for operating leases. This guidance will be effective for the first quarter of our fiscal year 2020. The new guidance is required to be applied using a modified retrospective approach. We are currently evaluating the impact that this guidance will have on our condensed consolidated financial statements. In August 2015, the FASB deferred the effective date of the guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. This guidance will be effective for the first quarter of our fiscal year 2019. Early adoption is permitted, but not before the first quarter of our fiscal year 2018. The new guidance is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. In addition, in 2016, the FASB issued amendments to clarify the implementation guidance for principal versus agent considerations, identifying performance obligations and the accounting for licenses of intellectual property, and narrow-scope improvements and practical expedients. We have not yet selected a transition method and are currently evaluating the impact of this guidance on our condensed consolidated financial statements. |
Acquisition (Tables) |
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Schedule of pro forma information | Consequently, actual results will differ from the unaudited pro forma information presented below (in millions, except for per share amounts):
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Supplemental Financial Information (Tables) |
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Balance Sheet Related Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of inventory | Inventory consists of the following (in millions):
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Schedule of Accrued Rebate [Table Text Block] | The following table summarizes activities related to accrued rebates included in other current liabilities on our condensed consolidated balance sheets (in millions):
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Other Noncurrent Liabilities [Table Text Block] | Other long-term liabilities consist of the following (in millions):
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Cash Flow, Supplemental Disclosures [Text Block] | The following table summarizes supplement cash flow information (in millions):
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | The following table summarizes changes in goodwill by segment (in millions):
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Schedule of Finite- and Indefinite-lived Intangible Assets | Intangible assets consist of the following (in millions):
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Finite-lived Intangible Assets Remaining | Based on the amount of intangible assets subject to amortization at January 29, 2017, the expected amortization expense for each of the next five fiscal years and thereafter is as follows (in millions):
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Finite-lived Intangible Assets Remaining Weighted Average Amortization Period | The weighted-average amortization periods remaining by intangible asset category as of January 29, 2017 were as follows (in years):
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented (in millions, except per share data):
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Borrowings Borrowings (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | The following table summarizes details of our Senior Notes:
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Schedule of Long-term Debt Instruments [Table Text Block] | The following table presents the details of the outstanding long-term debt assumed in connection with the acquisition of BRCM, or the Assumed Senior Notes:
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Schedule of Future Principal Payments on Debt | The future scheduled principal payments for the outstanding Senior Notes and Assumed Senior Notes as of January 29, 2017 were as follows (in millions):
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Shareholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share-based Compensation Expense | The following table summarizes share-based compensation expense reported in continuing operations related to share-based awards granted to employees and directors for the periods presented (in millions):
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Summary of RSU Activity | A summary of RSU activity under Broadcom’s equity incentive award plans is as follows (in millions, except years and per share amounts):
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Summary of Option Activity | A summary of share option activity under Broadcom’s equity incentive award plans is as follows (in millions, except years and per share amounts):
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Segment Information (Tables) |
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Schedule of Segment Reporting | The following tables present our net revenue and operating income by reportable segment for the periods presented (in millions):
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Related Party Transactions (Tables) |
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Transactions and Balances with Related Parties | The following tables summarize the transactions with these parties for the indicated periods (for the portion of such period that they were considered related) (in millions):
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Commitments and Contingencies (Tables) |
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Summary of Contractual Obligations and Commitments | The following table summarizes contractual obligations and commitments as of January 29, 2017 that materially changed from the end of fiscal 2016 (in millions):
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Restructuring Charges (Tables) |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the significant activities within, and components of, the restructuring liabilities related to continuing and discontinued operations during the fiscal quarter ended January 29, 2017 (in millions):
(a) Includes $4 million of restructuring expense related to discontinued operations recognized during the fiscal quarter ended January 29, 2017, which was included in loss from discontinued operations in our condensed consolidated statements of operations. (b) The majority of the employee termination costs balance is expected to be paid by the second quarter of fiscal year 2017. The leases and other exit costs balance is expected to be paid during the remaining terms of the leases, which extend through fiscal year 2025. |
Overview, Basis of Presentation and Significant Accounting Policies (Textuals) (Details) $ in Millions |
3 Months Ended |
---|---|
Jan. 29, 2017
USD ($)
Registrant
segment
| |
Number of reportable segments | segment | 4 |
Fiscal period end | 52- or 53-week |
Number of registrants | Registrant | 2 |
Retained Earnings [Member] | |
Cumulative effect of new accounting pronouncement | $ 47 |
Noncontrolling Interest [Member] | |
Cumulative effect of new accounting pronouncement | 3 |
Income Tax | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 42 |
Acquisition (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Nov. 02, 2016 |
Jan. 29, 2017 |
Feb. 22, 2017 |
|
Broadcom Agreement | |||
Business Acquisition [Line Items] | |||
Revenues | $ 2,301,000,000 | ||
Brocade Communications Systems, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Share Price | $ 12.75 | ||
Business Combination, Estimated Consideration Transferred | $ 5,500,000,000 | ||
Business Combination, Termination Fee, Specified Circumstances | $ 195,000,000 | ||
Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 800,000,000 |
Acquisitions - Pro Forma Information (Details) - Broadcom Limited, Avago, BRCM And Various Other Parties [Member] $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Jan. 31, 2016
USD ($)
$ / shares
| |
Business Acquisition [Line Items] | |
Pro forma net revenue | $ 3,821 |
Pro forma net income from continuing operations | 148 |
Pro forma net income | 148 |
Pro forma net income attributable to ordinary shares | $ 140 |
Pro forma income per share attributable to ordinary shares - basic | $ / shares | $ 0.36 |
Pro forma income per share attributable to ordinary shares - diluted | $ / shares | $ 0.35 |
Supplemental Financial Information (Cash and Investments) (Details) - USD ($) $ in Millions |
Jan. 29, 2017 |
Oct. 30, 2016 |
---|---|---|
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time Deposits, at Carrying Value | $ 1,603 | $ 1,022 |
Supplemental Financial Information (Inventory) (Details) - USD ($) $ in Millions |
Jan. 29, 2017 |
Oct. 30, 2016 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 478 | $ 431 |
Work-in-process | 612 | 596 |
Raw materials | 246 | 373 |
Total inventory | $ 1,336 | $ 1,400 |
Supplemental Financial Information (Accrued rebates) (Details) $ in Millions |
3 Months Ended |
---|---|
Jan. 29, 2017
USD ($)
| |
AccruedRebateActivityRollForward [Abstract] | |
Balance as of October 30, 2016 | $ 317 |
Charged as a reduction of revenue | 64 |
Reversal of unclaimed rebates | (19) |
Payments | (126) |
Balance as of January 29, 2017 | $ 236 |
Supplemental Financial Information (Other LT Liabilities) (Details) - USD ($) $ in Millions |
Jan. 29, 2017 |
Oct. 30, 2016 |
||
---|---|---|---|---|
Other Liabilities, Noncurrent [Abstract] | ||||
Deferred Tax Liabilities | $ 10,274 | $ 10,287 | ||
Unrecognized tax benefits (a) | [1] | 1,060 | 893 | |
Other | 71 | 113 | ||
Total other long-term liabilities | $ 11,405 | $ 11,293 | ||
|
Supplemental Financial Information (Supplemental cash flow) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Jan. 29, 2017 |
Jan. 31, 2016 |
Oct. 30, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for interest | $ 102 | $ 80 | |
Net cash paid (refunds received) for income taxes | 97 | $ (7) | |
Capital Expenditures Incurred but Not yet Paid | $ 116 | $ 159 |
Goodwill and Intangible Assets (Intangible asset amortization) (Details) - USD ($) $ in Millions |
Jan. 29, 2017 |
Oct. 30, 2016 |
---|---|---|
Finite-lived intangible assets future amortization expense | ||
2017 (remainder) | $ 3,224 | |
2018 | 2,855 | |
2019 | 2,101 | |
2020 | 1,735 | |
2021 | 1,389 | |
2022 | 1,008 | |
Thereafter | 627 | |
Net Book Value | $ 12,939 | $ 13,732 |
Goodwill and Intangible Assets (Intangible asset life) (Details) |
3 Months Ended |
---|---|
Jan. 29, 2017 | |
Purchased technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 6 years |
Customer contracts and related relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 3 years |
Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 13 years |
Other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 12 years |
Borrowings (Future Principal Payments) (Details) $ in Millions |
Jan. 29, 2017
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2017 (remainder) | $ 0 |
2018 | 117 |
2019 | 0 |
2020 | 2,750 |
2021 | 0 |
2022 | 3,509 |
Thereafter | 7,313 |
Total | $ 13,689 |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Jan. 30, 2017 |
Jan. 29, 2017 |
Jan. 31, 2016 |
Oct. 30, 2016 |
Feb. 01, 2016 |
|
Business Acquisition [Line Items] | |||||
Special Voting Shares Issued | 22,804,591 | 22,804,591 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.44 | ||||
Ordinary Shares [Member] | |||||
Business Acquisition [Line Items] | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.02 | ||||
Dividend payments to shareholders | $ 408 | $ 122 | |||
Restricted Exchangeable Unit [Member] | |||||
Business Acquisition [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||
Special Voting Shares Issued | 23,000,000 | ||||
Restricted Exchangeable Units, Conversion Shares | 1 | ||||
Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Common Stock, Shares Authorized In Period | 23,000,000 |
Shareholders' Equity (Share-based Compensation Expense) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 29, 2017 |
Jan. 31, 2016 |
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 201 | $ 57 |
Cost of products sold | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 14 | 6 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 141 | 28 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 46 | $ 23 |
Shareholders' Equity (Share-based Compensation Expense Textuals) (Details) $ in Millions |
3 Months Ended |
---|---|
Jan. 29, 2017
USD ($)
| |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost, RSUs and market based RSUs | $ 1,379 |
Period for recognition | 2 years 9 months |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost, time and market based options | $ 47 |
Period for recognition | 1 year 3 months 20 days |
Shareholders' Equity (Equity Incentive Award Plans) (Details) - Employee Stock Option [Member] $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Jan. 29, 2017
USD ($)
$ / shares
shares
| ||||
Option Awards Outstanding: | ||||
Balance as of October 30, 2016 (shares) | shares | 15 | |||
Exercised (shares) | shares | (2) | |||
Cancelled (shares) | shares | 0 | [1] | ||
Balance as of January 29, 2017 (shares) | shares | 13 | |||
Option Awards Outstanding, Weighted-average Exercise Price: | ||||
Beginning balance weighted average exercise price per share (in dollars per share) | $ / shares | $ 48.77 | |||
Exercised weighted average exercise price per share (in dollars per share) | $ / shares | 45.78 | |||
Cancelled weighted average exercise price per share (in dollars per share) | $ / shares | 62.85 | |||
Ending balance weighted average exercise price per share (in dollars per share) | $ / shares | $ 48.97 | |||
Additional Option Disclosures: | ||||
Outstanding, weighted-average remaining contractual life | 3 years 5 months 27 days | |||
Outstanding, aggregate intrinsic value | $ | $ 2,067 | |||
Fully vested as of January 29, 2017 (shares) | shares | 9 | |||
Vested, weighted-average exercise price per share (in dollars per share) | $ / shares | $ 43.35 | |||
Vested, weighted-average remaining contractual life | 3 years 2 months 20 days | |||
Vested, aggregate intrinsic value | $ | $ 1,482 | |||
Fully vested and expected to vest as of January 29, 2017 (shares) | shares | 13 | |||
Vested and expected to vest, weighted-average exercise price per share (in dollars per share) | $ / shares | $ 48.97 | |||
Vested and expected to vest, weighted-average remaining contractual life | 3 years 5 months 27 days | |||
Vested and expected to vest, aggregate intrinsic value | $ | $ 2,067 | |||
Total intrinsic value of options exercised | $ | $ 189 | |||
|
Partners' Capital (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 29, 2017 |
Jan. 31, 2016 |
|
General Partners' Capital Account, Period Distribution Amount | $ 408 | |
Cash distribution paid per restricted exchangeable partnership unit | $ 1.02 | |
Distribution Made to Limited Partner, Cash Distributions Paid | $ 23 | |
Broadcom Cayman L.P. [Member] | ||
Cash distribution paid per restricted exchangeable partnership unit | $ 1.02 | $ 0.00 |
Restricted Exchangeable Unit [Member] | ||
Restricted Exchangeable Units, Conversion Shares | 1 | |
General Partner [Member] | General Partner [Member] | Common Stock Including Additional Paid in Capital [Member] | Broadcom Cayman L.P. [Member] | ||
Adjustments to Additional Paid in Capital, General Partner Transaction | $ 61 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 29, 2017 |
Jan. 31, 2016 |
|
Income Tax Contingency [Line Items] | ||
Provision for income taxes | $ 10 | $ 17 |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits that may be recognized | 12 | |
Windfall Tax Benefits on Share-Based Awards [Domain] | ||
Income Tax Contingency [Line Items] | ||
Other Tax Expense (Benefit) | $ (42) |
Segment Information (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Jan. 29, 2017
USD ($)
Customer
segment
|
Jan. 31, 2016
USD ($)
Customer
|
|
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 4 | |
Net revenue | $ 4,139 | $ 1,771 |
Operating Income (Loss) | 506 | 475 |
Wired Infrastructure | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 2,084 | 386 |
Operating Income (Loss) | 933 | 135 |
Wireless Communications | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 1,175 | 578 |
Operating Income (Loss) | 427 | 265 |
Enterprise storage | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 707 | 678 |
Operating Income (Loss) | 375 | 309 |
Industrial & Other | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 173 | 129 |
Operating Income (Loss) | 61 | 63 |
Unallocated expenses | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ (1,290) | $ (297) |
Customer Concentration Risk | Accounts Receivable [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Number of Major Customers | Customer | 1 | |
Customer Concentration Risk | Sales | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Number of Major Customers | Customer | 1 | 2 |
Major Customer One | Customer Concentration Risk | Accounts Receivable [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 18.00% |
Major Customer One | Customer Concentration Risk | Sales | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 15.00% | 15.00% |
Major Customer Two [Member] | Customer Concentration Risk | Sales | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
Related Party Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jan. 29, 2017 |
Jan. 31, 2016 |
Oct. 30, 2016 |
|
Related Party Transactions [Abstract] | |||
Total net revenue | $ 77 | $ 39 | |
Total costs and expenses, including inventory purchases | 19 | $ 13 | |
Total receivables | 23 | $ 15 | |
Total payables | $ 11 | $ 7 |
Commitments and Contingencies (Details) $ in Millions |
Jan. 29, 2017
USD ($)
|
---|---|
Debt principal, interest and fees | |
Debt principal, interest and fees | $ 16,919 |
Debt Principal, Interest and Fees, 2017 (remainder) | 222 |
Debt Principal, Interest and Fees, due in 2018 | 569 |
Debt Principal, Interest and Fees, due in 2019 | 450 |
Debt Principal, Interest and Fees, due in 2020 | 3,166 |
Debt Principal, Interest and Fees, due in 2021 | 383 |
Debt Principal, Interest and Fees, due in 2022 | 3,839 |
Debt Principal, Interest and Fees, Thereafter | 8,290 |
Purchase commitments | |
Purchase Commitments, Total | 1,029 |
Purchase Commitments, 2017 (remainder) | 960 |
Purchase Commitments, 2018 | 54 |
Purchase Commitments, 2019 | 14 |
Purchase Commitments, 2020 | 1 |
Purchase Commitments, 2021 | 0 |
Purchase Commitments, 2022 | 0 |
Purchase Commitments, Thereafter | $ 0 |
Commitments and Contingencies (Textuals) (Details) $ in Millions |
1 Months Ended | 2 Months Ended | 3 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jan. 31, 2017
patent
|
Nov. 07, 2016
patent
|
Jun. 19, 2016
patent
|
May 23, 2016
patent
|
Sep. 04, 2015
lawsuit
|
Jan. 18, 2017
lawsuit
|
Jul. 31, 2014
lawsuit
|
Jan. 29, 2017
USD ($)
lawsuit
|
|
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Unrecognized Tax Benefits Payable, Accrued Interest and Penalties | $ | $ 1,060 | |||||||
BrocadeMerger [Member] | Pending Litigation | Northern District of California [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 6 | |||||||
Tessera Tech, Inc., Tessera, Inc. and Invensas Corp [Member] | U.S. International Trade Commission [Domain] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 3 | |||||||
Tessera Tech, Inc., Tessera, Inc. and Invensas Corp [Member] | District of Delaware [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 2 | 3 | ||||||
Tessera, Tessera Advanced Technologies, Inc. [Member] | District of Delaware [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 3 | 4 | ||||||
Tessera, Tessera Advanced Technologies, Inc. [Member] | UNITED STATES | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 7 | |||||||
Invensas [Member] | District of Delaware [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 2 | |||||||
Broadcom Shareholders [Member] | Pending Litigation | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 11 | |||||||
Broadcom Shareholders [Member] | Pending Litigation | Central District of California [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 2 | |||||||
Broadcom Shareholders [Member] | Pending Litigation | County of Santa Clara, California [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 1 | |||||||
Broadcom Shareholders [Member] | Pending Litigation | County of Orange, California [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 8 | |||||||
Emulex Shareholders [Member] | Pending Litigation | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 2 | |||||||
Emulex Shareholders Consolidated [Member] | Pending Litigation | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 3 | |||||||
In re PLX Technology, Inc. S'holder Litig. | Pending Litigation | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 4 | |||||||
In re PLX Technology, Inc. Stockholders Litigation, Consol. | Pending Litigation | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Lawsuits filed | 5 | |||||||
Loss Contingency, Number of Defendants, Directors | 5 | |||||||
In re PLX Technology, Inc. Stockholders Litigation, Consol. | Motions Granted [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Loss Contingency, Number of Defendants, Directors | 2 | |||||||
Minimum [Member] | Tessera Tech, Inc., Tessera, Inc. and Invensas Corp [Member] | U.S. International Trade Commission [Domain] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 1 | |||||||
Subsequent Event [Member] | Tessera Tech, Inc., Tessera, Inc. and Invensas Corp [Member] | District of Delaware [Member] | ||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 3 |
Restructuring Charges (Details) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jan. 29, 2017
USD ($)
employees
|
Jan. 31, 2016
USD ($)
|
||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance as of October 29, 2016 | $ 151 | ||||||
Restructuring charges (a) | 46 | ||||||
Utilization | (80) | ||||||
Balance as of January 29, 2017 (b) | $ 117 | ||||||
Employee Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected completion date | Apr. 30, 2017 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance as of October 29, 2016 | $ 116 | ||||||
Restructuring charges (a) | [1] | 36 | |||||
Utilization | (65) | ||||||
Balance as of January 29, 2017 (b) | [2] | $ 87 | |||||
Leases and Other Exit Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Expected completion date | Mar. 31, 2025 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Balance as of October 29, 2016 | $ 35 | ||||||
Restructuring charges (a) | [1] | 10 | |||||
Utilization | (15) | ||||||
Balance as of January 29, 2017 (b) | [2] | $ 30 | |||||
Broadcom Limited, Avago, BRCM And Various Other Parties [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employees | 3,200 | ||||||
Restructuring Charges | $ 42 | ||||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | (10) | ||||||
Emulex and LSI acquisitions [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Charges | $ 10 | ||||||
Subsystem Assets [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ (22) | ||||||
Discontinued Operations, Held-for-sale [Member] | Broadcom Limited, Avago, BRCM And Various Other Parties [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring charges (a) | $ 4 | ||||||
|
Subsequent Events - Cash Dividends (Details) - $ / shares |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 20, 2017 |
Feb. 27, 2017 |
Jan. 29, 2017 |
Jan. 31, 2016 |
|
Dividends Payable [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ 1.02 | $ 0.44 | |||
Subsequent Event | |||||
Dividends Payable [Line Items] | |||||
Dividends payable, date declared | Feb. 28, 2017 | ||||
Common Stock, Dividends, Per Share, Declared | $ 1.02 | ||||
Dividends payable, date to be paid | Mar. 31, 2017 | ||||
Dividends payable, date of record | Mar. 20, 2017 | ||||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 1.02 | ||||
Distribution Made to Limited Partner, Distribution Date | Mar. 31, 2017 | ||||
Distribution Made to Limited Partner, Date of Record | Mar. 20, 2017 |
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