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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(MARK ONE)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 3, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Broadcom Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3844935-2617337
(State or other jurisdiction of
incorporation or organization)
(Commission file Number)
(I.R.S. Employer
Identification No.)
1320 Ridder Park Drive
San Jose,CA95131-2313
(408) 
433-8000
(Address, including zip code, of
principal executive offices and registrant’s
telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerþAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No þ
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.001 par valueAVGOThe NASDAQ Global Select Market
8.00% Mandatory Convertible Preferred Stock, Series A, $0.001 par valueAVGOPThe NASDAQ Global Select Market

As of May 29, 2020, there were 402,185,283 shares of our common stock outstanding.




BROADCOM INC.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended May 3, 2020

TABLE OF CONTENTS



PART I — FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements — Unaudited
BROADCOM INC.
INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — UNAUDITED

1

BROADCOM INC.
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED

May 3,
2020
November 3,
2019
(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents$9,207  $5,055  
Trade accounts receivable, net3,211  3,259  
Inventory953  874  
Other current assets851  729  
Total current assets14,222  9,917  
Long-term assets:
Property, plant and equipment, net2,618  2,565  
Goodwill43,457  36,714  
Intangible assets, net19,909  17,554  
Other long-term assets1,342  743  
Total assets$81,548  $67,493  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$1,230  $855  
Employee compensation and benefits494  641  
Current portion of long-term debt819  2,787  
Other current liabilities4,058  2,616  
Total current liabilities6,601  6,899  
Long-term liabilities:  
Long-term debt45,044  30,011  
Other long-term liabilities5,933  5,613  
Total liabilities57,578  42,523  
Commitments and contingencies (Note 12) 
Preferred stock dividend obligation28  29  
Stockholders’ equity:
Preferred stock, $0.001 par value; 100 shares authorized; 8.00% Mandatory Convertible Preferred Stock, Series A, 4 shares issued and outstanding; aggregate liquidation value of $3,738 as of May 3, 2020 and November 3, 2019
    
Common stock, $0.001 par value; 2,900 shares authorized; 402 and 398 shares issued and outstanding as of May 3, 2020 and November 3, 2019, respectively
    
Additional paid-in capital24,073  25,081  
Retained earnings    
Accumulated other comprehensive loss(131) (140) 
Total stockholders’ equity23,942  24,941  
Total liabilities and equity$81,548  $67,493  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
Fiscal Quarter EndedTwo Fiscal Quarters Ended
May 3,
2020
May 5,
2019
May 3,
2020
May 5,
2019
(In millions, except per share data)
Net revenue:
Products$4,253  $4,418  $8,457  $9,057  
Subscriptions and services1,489  1,099  3,143  2,249  
Total net revenue5,742  5,517  11,600  11,306  
Cost of revenue:
Cost of products sold1,448  1,457  2,907  3,011  
Cost of subscriptions and services144  135  321  273  
Amortization of acquisition-related intangible assets954  826  1,904  1,659  
Restructuring charges7  10  15  66  
Total cost of revenue2,553  2,428  5,147  5,009  
Gross margin3,189  3,089  6,453  6,297  
Research and development1,269  1,151  2,558  2,284  
Selling, general and administrative501  419  1,102  890  
Amortization of acquisition-related intangible assets599  473  1,202  949  
Restructuring, impairment and disposal charges54  76  111  649  
Total operating expenses2,423  2,119  4,973  4,772  
Operating income766  970  1,480  1,525  
Interest expense(487) (376) (893) (721) 
Other income, net130  63  126  131  
Income from continuing operations before income taxes409  657  713  935  
Benefit from income taxes(159) (36) (235) (239) 
Income from continuing operations568  693  948  1,174  
Loss from discontinued operations, net of income taxes
(5) (2)   (12) 
Net income563  691  948  1,162  
Dividends on preferred stock(75)   (149)   
Net income attributable to common stock$488  $691  $799  $1,162  
Basic income per share attributable to common stock:
Income per share from continuing operations$1.23  $1.75  $2.00  $2.94  
Loss per share from discontinued operations(0.01) (0.01)   (0.03) 
Net income per share$1.22  $1.74  $2.00  $2.91  
Diluted income per share attributable to common stock:
Income per share from continuing operations$1.18  $1.64  $1.91  $2.80  
Loss per share from discontinued operations(0.01)     (0.03) 
Net income per share$1.17  $1.64  $1.91  $2.77  
Weighted-average shares used in per share calculations:
Basic401  397  400  399  
Diluted417  422  419  420  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
3


BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME — UNAUDITED

Fiscal Quarter EndedTwo Fiscal Quarters Ended
May 3,
2020
May 5,
2019
May 3,
2020
May 5,
2019
(In millions)
Net income$563  $691  $948  $1,162  
Other comprehensive income, net of tax:
Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans
1    1    
Other comprehensive income, net of tax1    1    
Comprehensive income$564  $691  $949  $1,162  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED

Two Fiscal Quarters Ended
May 3,
2020
May 5,
2019
(In millions)
Cash flows from operating activities:
Net income$948  $1,162  
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible and right-of-use assets3,165  2,621  
Depreciation293  285  
Stock-based compensation1,062  1,009  
Deferred taxes and other non-cash taxes(247) (473) 
Loss on debt extinguishment98    
Non-cash restructuring, impairment and disposal charges17  98  
Non-cash interest expense61  27  
Other11  (60) 
Changes in assets and liabilities, net of acquisitions and disposals:
Trade accounts receivable, net48  261  
Inventory30  90  
Accounts payable350  (139) 
Employee compensation and benefits(156) (464) 
Other current assets and current liabilities464  469  
Other long-term assets and long-term liabilities(609) (87) 
Net cash provided by operating activities5,535  4,799  
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired(10,870) (16,027) 
Proceeds from sales of businesses168  957  
Purchases of property, plant and equipment(256) (224) 
Other(5) (5) 
Net cash used in investing activities(10,963) (15,299) 
Cash flows from financing activities:
Proceeds from long-term borrowings19,849  28,793  
Repayment of debt(8,989) (12,000) 
Other borrowings, net1,743  1,575  
Payment of dividends(2,753) (2,124) 
Repurchases of common stock - repurchase program  (4,266) 
Shares repurchased for tax withholdings on vesting of equity awards(388) (577) 
Issuance of common stock128  183  
Other(10) (48) 
Net cash provided by financing activities9,580  11,536  
Net change in cash and cash equivalents4,152  1,036  
Cash and cash equivalents at beginning of period5,055  4,292  
Cash and cash equivalents at end of period$9,207  $5,328  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
5


BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY — UNAUDITED
Two Fiscal Quarters Ended May 3, 2020

8.00% Mandatory Convertible Preferred StockCommon Stock Additional Paid-in CapitalRetained
Earnings
Accumulated
Other
Comprehensive
Loss
Total Stockholders’
Equity
SharesPar ValueSharesPar Value
(In millions)
Balance as of November 3, 20194  $  398  $  $25,081  $  $(140) $24,941  
Net income—  —  —  —  —  385  —  385  
Cumulative effect of accounting change—  —  —  —  —  (10) 8  (2) 
Fair value of partially vested equity awards assumed in connection with an acquisition
—  —  —  —  1  —  —  1  
Dividends to common stockholders
—  —  —  —  (996) (301) —  (1,297) 
Dividends to preferred stockholders
—  —  —  —  —  (74) —  (74) 
Common stock issued
—  —  2    37  —  —  37  
Stock-based compensation—  —  —  —  545  —  —  545  
Shares repurchased for tax withholdings on vesting of equity awards
—  —  (1)   (168) —  —  (168) 
Balance as of February 2, 20204    399    24,500    (132) 24,368  
Net income—  —  —  —  —  563  —  563  
Other comprehensive income—  —  —  —  —  —  1  1  
Dividends to common stockholders
—  —  —  —  (818) (488) —  (1,306) 
Dividends to preferred stockholders
—  —  —  —  —  (75) —  (75) 
Common stock issued
—  —  4    91  —  —  91  
Stock-based compensation—  —  —  —  517  —  —  517  
Shares repurchased for tax withholdings on vesting of equity awards
—  —  (1)   (217) —  —  (217) 
Balance as of May 3, 20204  $  402  $  $24,073  $  $(131) $23,942  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
6


BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY — UNAUDITED
Two Fiscal Quarters Ended May 5, 2019

Common Stock Additional
Paid-in Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
SharesPar Value
(In millions)
Balance as of November 4, 2018408  $  $23,285  $3,487  $(115) $26,657  
Net income—  —  —  471  —  471  
Cumulative effect of accounting change—  —  —  8  (1) 7  
Fair value of partially vested equity awards assumed in connection with the acquisition of CA, Inc.
—  —  67  —  —  67  
Dividends to common stockholders
—  —  —  (1,067) —  (1,067) 
Common stock issued
2    62  —  —  62  
Stock-based compensation—  —  540  —  —  540  
Repurchases of common stock(14)   (796) (2,640) —  (3,436) 
Shares repurchased for tax withholdings on vesting of equity awards
    (77) —  —  (77) 
Balance as of February 3, 2019396    23,081  259  (116) 23,224  
Net income—  —  —  691  —  691  
Dividends to common stockholders
—  —  (331) (726) —  (1,057) 
Common stock issued
8    121  —  —  121  
Stock-based compensation—  —  544  —  —  544  
Repurchases of common stock(3)   (606) (224) —  (830) 
Shares repurchased for tax withholdings on vesting of equity awards
(2)   (521) —  —  (521) 
Balance as of May 5, 2019399  $  $22,288  $  $(116) $22,172  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
7

BROADCOM INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Overview, Basis of Presentation and Significant Accounting Policies
Overview
Broadcom Inc. (“Broadcom”), a Delaware corporation, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. We develop 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