0001730168October 312021Q1FALSE00017301682020-11-022021-01-310001730168us-gaap:CommonStockMember2020-11-022021-01-310001730168us-gaap:SeriesAPreferredStockMember2020-11-022021-01-31xbrli:shares00017301682021-02-26iso4217:USD00017301682021-01-3100017301682020-11-01iso4217:USDxbrli:sharesxbrli:pure00017301682019-11-042020-11-010001730168us-gaap:ProductMember2020-11-022021-01-310001730168us-gaap:ProductMember2019-11-042020-02-020001730168avgo:SubscriptionsandServicesMember2020-11-022021-01-310001730168avgo:SubscriptionsandServicesMember2019-11-042020-02-0200017301682019-11-042020-02-0200017301682019-11-0300017301682020-02-020001730168us-gaap:PreferredStockMember2020-11-022021-01-310001730168us-gaap:PreferredStockMember2019-11-042020-02-020001730168us-gaap:PreferredStockMember2020-11-010001730168us-gaap:CommonStockMember2020-11-010001730168us-gaap:AdditionalPaidInCapitalMember2020-11-010001730168us-gaap:RetainedEarningsMember2020-11-010001730168us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-11-010001730168us-gaap:RetainedEarningsMember2020-11-022021-01-310001730168us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-11-022021-01-310001730168us-gaap:AdditionalPaidInCapitalMember2020-11-022021-01-310001730168us-gaap:CommonStockMember2020-11-022021-01-310001730168us-gaap:PreferredStockMember2021-01-310001730168us-gaap:CommonStockMember2021-01-310001730168us-gaap:AdditionalPaidInCapitalMember2021-01-310001730168us-gaap:RetainedEarningsMember2021-01-310001730168us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-310001730168us-gaap:PreferredStockMember2019-11-030001730168us-gaap:CommonStockMember2019-11-030001730168us-gaap:AdditionalPaidInCapitalMember2019-11-030001730168us-gaap:RetainedEarningsMember2019-11-030001730168us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-11-030001730168us-gaap:RetainedEarningsMember2019-11-042020-02-020001730168us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-11-030001730168us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-11-030001730168srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-11-030001730168us-gaap:AdditionalPaidInCapitalMember2019-11-042020-02-020001730168us-gaap:CommonStockMember2019-11-042020-02-020001730168us-gaap:PreferredStockMember2020-02-020001730168us-gaap:CommonStockMember2020-02-020001730168us-gaap:AdditionalPaidInCapitalMember2020-02-020001730168us-gaap:RetainedEarningsMember2020-02-020001730168us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-02-02avgo:segment0001730168us-gaap:ProductMembersrt:AmericasMember2020-11-022021-01-310001730168us-gaap:ProductMembersrt:AsiaPacificMember2020-11-022021-01-310001730168us-gaap:ProductMemberus-gaap:EMEAMember2020-11-022021-01-310001730168srt:AmericasMemberavgo:SubscriptionsandServicesMember2020-11-022021-01-310001730168srt:AsiaPacificMemberavgo:SubscriptionsandServicesMember2020-11-022021-01-310001730168avgo:SubscriptionsandServicesMemberus-gaap:EMEAMember2020-11-022021-01-310001730168srt:AmericasMember2020-11-022021-01-310001730168srt:AsiaPacificMember2020-11-022021-01-310001730168us-gaap:EMEAMember2020-11-022021-01-310001730168us-gaap:ProductMembersrt:AmericasMember2019-11-042020-02-020001730168us-gaap:ProductMembersrt:AsiaPacificMember2019-11-042020-02-020001730168us-gaap:ProductMemberus-gaap:EMEAMember2019-11-042020-02-020001730168srt:AmericasMemberavgo:SubscriptionsandServicesMember2019-11-042020-02-020001730168srt:AsiaPacificMemberavgo:SubscriptionsandServicesMember2019-11-042020-02-020001730168avgo:SubscriptionsandServicesMemberus-gaap:EMEAMember2019-11-042020-02-020001730168srt:AmericasMember2019-11-042020-02-020001730168srt:AsiaPacificMember2019-11-042020-02-020001730168us-gaap:EMEAMember2019-11-042020-02-020001730168avgo:SymantecAssetPurchaseMember2019-11-042019-11-040001730168avgo:SymantecAssetPurchaseMember2019-11-042020-02-020001730168us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2019-11-042020-02-020001730168us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2021-01-310001730168us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2020-11-010001730168avgo:SemiconductorSolutionsMember2020-11-010001730168avgo:InfrastructureSoftwareMember2020-11-010001730168avgo:SemiconductorSolutionsMember2020-11-022021-01-310001730168avgo:InfrastructureSoftwareMember2020-11-022021-01-310001730168avgo:SemiconductorSolutionsMember2021-01-310001730168avgo:InfrastructureSoftwareMember2021-01-310001730168us-gaap:TechnologyBasedIntangibleAssetsMember2021-01-310001730168us-gaap:CustomerContractsMember2021-01-310001730168us-gaap:OrderOrProductionBacklogMember2021-01-310001730168us-gaap:TradeNamesMember2021-01-310001730168us-gaap:OtherIntangibleAssetsMember2021-01-310001730168us-gaap:InProcessResearchAndDevelopmentMember2021-01-310001730168us-gaap:TechnologyBasedIntangibleAssetsMember2020-11-010001730168us-gaap:CustomerContractsMember2020-11-010001730168us-gaap:OrderOrProductionBacklogMember2020-11-010001730168us-gaap:TradeNamesMember2020-11-010001730168us-gaap:OtherIntangibleAssetsMember2020-11-010001730168us-gaap:InProcessResearchAndDevelopmentMember2020-11-010001730168us-gaap:TechnologyBasedIntangibleAssetsMember2020-11-022021-01-310001730168us-gaap:CustomerRelatedIntangibleAssetsMember2020-11-022021-01-310001730168us-gaap:OrderOrProductionBacklogMember2020-11-022021-01-310001730168us-gaap:TradeNamesMember2020-11-022021-01-310001730168us-gaap:OtherIntangibleAssetsMember2020-11-022021-01-310001730168avgo:February2028SeniorNotesMember2021-01-310001730168avgo:February2028SeniorNotesMember2020-11-010001730168avgo:February2031SeniorNotesMember2021-01-310001730168avgo:February2031SeniorNotesMember2020-11-010001730168avgo:February2033SeniorNotesMember2021-01-310001730168avgo:February2033SeniorNotesMember2020-11-010001730168avgo:February2041SeniorNotesMember2021-01-310001730168avgo:February2041SeniorNotesMember2020-11-010001730168avgo:February2051SeniorNotesMember2021-01-310001730168avgo:February2051SeniorNotesMember2020-11-010001730168avgo:September2026SeniorNotesMember2021-01-310001730168avgo:September2026SeniorNotesMember2020-11-010001730168avgo:September2028SeniorNotesMember2021-01-310001730168avgo:September2028SeniorNotesMember2020-11-010001730168avgo:November2023SeniorNotesMember2021-01-310001730168avgo:November2023SeniorNotesMember2020-11-010001730168avgo:November2025SeniorNotesMember2020-11-010001730168avgo:November2025SeniorNotesMember2021-01-310001730168avgo:November2030SeniorNotesMember2020-11-010001730168avgo:November2030SeniorNotesMember2021-01-310001730168avgo:November2032SeniorNotesMember2021-01-310001730168avgo:November2032SeniorNotesMember2020-11-010001730168avgo:April2025SeniorNotesMember2020-11-010001730168avgo:April2025SeniorNotesMember2021-01-310001730168avgo:April2030SeniorNotesMember2021-01-310001730168avgo:April2030SeniorNotesMember2020-11-010001730168avgo:TermLoanthroughNovember2022Member2020-11-010001730168avgo:TermLoanthroughNovember2022Member2021-01-310001730168avgo:TermLoanThroughNovember2024Member2020-11-010001730168avgo:TermLoanThroughNovember2024Member2021-01-310001730168avgo:April2021SeniorNotesMember2020-11-010001730168avgo:April2021SeniorNotesMember2021-01-310001730168avgo:October2022SeniorNotesMember2020-11-010001730168avgo:October2022SeniorNotesMember2021-01-310001730168avgo:October2024SeniorNotesMember2021-01-310001730168avgo:October2024SeniorNotesMember2020-11-010001730168avgo:April2026SeniorNotesMember2020-11-010001730168avgo:April2026SeniorNotesMember2021-01-310001730168avgo:April2029SeniorNotesMember2021-01-310001730168avgo:April2029SeniorNotesMember2020-11-010001730168avgo:January2021SeniorNotesMember2020-11-010001730168avgo:January2021SeniorNotesMember2021-01-310001730168avgo:January2022SeniorNotesMember2020-11-010001730168avgo:January2022SeniorNotesMember2021-01-310001730168avgo:January2023SeniorNotesMember2020-11-010001730168avgo:January2023SeniorNotesMember2021-01-310001730168avgo:January2024SeniorNotesMember2021-01-310001730168avgo:January2024SeniorNotesMember2020-11-010001730168avgo:January2025SeniorNotesMember2021-01-310001730168avgo:January2025SeniorNotesMember2020-11-010001730168avgo:January2027SeniorNotesMember2021-01-310001730168avgo:January2027SeniorNotesMember2020-11-010001730168avgo:January2028SeniorNotesMember2020-11-010001730168avgo:January2028SeniorNotesMember2021-01-310001730168avgo:August2022SeniorNotesMemberavgo:CATechnologiesInc.Member2020-11-010001730168avgo:August2022SeniorNotesMemberavgo:CATechnologiesInc.Member2021-01-310001730168avgo:CATechnologiesInc.Memberavgo:August2023SeniorNotesMember2020-11-010001730168avgo:CATechnologiesInc.Memberavgo:August2023SeniorNotesMember2021-01-310001730168avgo:March2027SeniorNotesMemberavgo:CATechnologiesInc.Member2021-01-310001730168avgo:March2027SeniorNotesMemberavgo:CATechnologiesInc.Member2020-11-010001730168avgo:BRCMMembersrt:MinimumMemberavgo:August2022August2034SeniorNotesDomain2020-11-010001730168avgo:BRCMMembersrt:MinimumMemberavgo:August2022August2034SeniorNotesDomain2021-01-310001730168srt:MaximumMemberavgo:BRCMMemberavgo:August2022August2034SeniorNotesDomain2021-01-310001730168srt:MaximumMemberavgo:BRCMMemberavgo:August2022August2034SeniorNotesDomain2020-11-010001730168avgo:BRCMMemberavgo:August2022August2034SeniorNotesDomain2021-01-310001730168avgo:BRCMMemberavgo:August2022August2034SeniorNotesDomain2020-11-010001730168avgo:January2021SeniorNotesMember2020-11-022021-01-310001730168avgo:November2019TermLoansMember2020-11-022021-01-310001730168avgo:A2021TenderedNotesMember2020-11-022021-01-310001730168us-gaap:SubsequentEventMember2021-02-032021-02-030001730168us-gaap:SubsequentEventMember2021-02-052021-02-180001730168us-gaap:SubsequentEventMember2021-03-052021-03-050001730168us-gaap:SubsequentEventMember2021-02-032021-03-050001730168us-gaap:RevolvingCreditFacilityMemberavgo:January2021CreditAgreementMember2021-01-190001730168us-gaap:ForeignLineOfCreditMemberavgo:January2021CreditAgreementMember2021-01-190001730168us-gaap:RevolvingCreditFacilityMemberavgo:May2019CreditAgreementMember2019-05-070001730168avgo:RevolverBorrowingsMember2021-01-3100017301682019-02-280001730168avgo:CommercialPaperNotesMember2020-11-010001730168avgo:CommercialPaperNotesMember2021-01-310001730168us-gaap:FairValueInputsLevel2Member2021-01-3100017301682018-11-052019-11-030001730168srt:MinimumMember2021-01-310001730168srt:MaximumMember2021-01-310001730168us-gaap:CostOfSalesMember2020-11-022021-01-310001730168us-gaap:CostOfSalesMember2019-11-042020-02-020001730168avgo:CostofsubscriptionsandservicesMember2020-11-022021-01-310001730168avgo:CostofsubscriptionsandservicesMember2019-11-042020-02-020001730168us-gaap:ResearchAndDevelopmentArrangementMember2020-11-022021-01-310001730168us-gaap:ResearchAndDevelopmentArrangementMember2019-11-042020-02-020001730168us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-11-022021-01-310001730168us-gaap:SellingGeneralAndAdministrativeExpensesMember2019-11-042020-02-020001730168us-gaap:RestrictedStockUnitsRSUMember2020-11-010001730168us-gaap:RestrictedStockUnitsRSUMember2020-11-022021-01-310001730168us-gaap:RestrictedStockUnitsRSUMember2021-01-310001730168us-gaap:EmployeeStockOptionMember2020-11-010001730168us-gaap:EmployeeStockOptionMember2020-11-022021-01-310001730168us-gaap:EmployeeStockOptionMember2021-01-310001730168avgo:SemiconductorSolutionsMember2019-11-042020-02-020001730168avgo:InfrastructureSoftwareMember2019-11-042020-02-020001730168avgo:UnallocatedExpensesMember2020-11-022021-01-310001730168avgo:UnallocatedExpensesMember2019-11-042020-02-02avgo:Customer0001730168us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2019-11-042020-11-010001730168us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2020-11-022021-01-310001730168us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2020-11-022021-01-310001730168us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2019-11-042020-02-020001730168us-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2020-11-022021-01-310001730168us-gaap:SalesMemberus-gaap:CustomerConcentrationRiskMember2019-11-042020-02-020001730168us-gaap:PendingLitigationMemberavgo:CaltechMember2020-11-022021-01-310001730168avgo:SymantecMember2019-11-042020-02-020001730168avgo:CATechnologiesInc.Member2019-11-042020-02-020001730168us-gaap:EmployeeSeveranceMember2020-11-010001730168us-gaap:OtherRestructuringMember2020-11-010001730168us-gaap:EmployeeSeveranceMember2020-11-022021-01-310001730168us-gaap:OtherRestructuringMember2020-11-022021-01-310001730168us-gaap:EmployeeSeveranceMember2021-01-310001730168us-gaap:OtherRestructuringMember2021-01-310001730168us-gaap:SubsequentEventMember2021-03-032021-03-030001730168us-gaap:PreferredStockMemberus-gaap:SubsequentEventMember2021-03-032021-03-030001730168us-gaap:SubsequentEventMember2021-03-312021-03-310001730168us-gaap:PreferredStockMemberus-gaap:SubsequentEventMember2021-03-152021-03-150001730168us-gaap:CommonStockMemberus-gaap:SubsequentEventMember2021-03-032021-03-030001730168us-gaap:CommonStockMemberus-gaap:SubsequentEventMember2021-03-222021-03-22


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 January 31, 2021
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.
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 February 26, 2021, there were 408,302,326 shares of our common stock outstanding.




BROADCOM INC.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended January 31, 2021

TABLE OF CONTENTS
Page



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

1

Table of Contents
BROADCOM INC.
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED

January 31,
2021
November 1,
2020
(In millions, except par value)
ASSETS
Current assets:
Cash and cash equivalents$9,552 $7,618 
Trade accounts receivable, net2,524 2,297 
Inventory952 1,003 
Other current assets1,272 977 
Total current assets14,300 11,895 
Long-term assets:
Property, plant and equipment, net2,496 2,509 
Goodwill43,457 43,447 
Intangible assets, net15,419 16,782 
Other long-term assets1,300 1,300 
Total assets$76,972 $75,933 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$898 $836 
Employee compensation and benefits494 877 
Current portion of long-term debt864 827 
Other current liabilities4,438 3,831 
Total current liabilities6,694 6,371 
Long-term liabilities:  
Long-term debt41,068 40,235 
Other long-term liabilities5,211 5,426 
Total liabilities52,973 52,032 
Commitments and contingencies (Note 11)
Preferred stock dividend obligation26 27 
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 January 31, 2021 and November 1, 2020
  
Common stock, $0.001 par value; 2,900 shares authorized; 408 and 407 shares issued and outstanding as of January 31, 2021 and November 1, 2020, respectively
  
Additional paid-in capital24,080 23,982 
Retained earnings  
Accumulated other comprehensive loss(107)(108)
Total stockholders’ equity23,973 23,874 
Total liabilities and equity$76,972 $75,933 

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

2

Table of Contents
BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
Fiscal Quarter Ended
January 31,
2021
February 2,
2020
(In millions, except per share data)
Net revenue:
Products$5,081 $4,204 
Subscriptions and services1,574 1,654 
Total net revenue6,655 5,858 
Cost of revenue:
Cost of products sold1,672 1,459 
Cost of subscriptions and services142 177 
Amortization of acquisition-related intangible assets874 950 
Restructuring charges15 8 
Total cost of revenue2,703 2,594 
Gross margin3,952 3,264 
Research and development1,211 1,289 
Selling, general and administrative339 601 
Amortization of acquisition-related intangible assets494 603 
Restructuring, impairment and disposal charges71 57 
Total operating expenses2,115 2,550 
Operating income1,837 714 
Interest expense(570)(406)
Other income (expense), net117 (4)
Income from continuing operations before income taxes1,384 304 
Provision for (benefit from) income taxes6 (76)
Income from continuing operations1,378 380 
Income from discontinued operations, net of income taxes 5 
Net income1,378 385 
Dividends on preferred stock(74)(74)
Net income attributable to common stock$1,304 $311 
Basic income per share attributable to common stock:
Income per share from continuing operations$3.20 $0.77 
Income per share from discontinued operations 0.01 
Net income per share$3.20 $0.78 
Diluted income per share attributable to common stock:
Income per share from continuing operations$3.05 $0.73 
Income per share from discontinued operations 0.01 
Net income per share$3.05 $0.74 
Weighted-average shares used in per share calculations:
Basic407 398 
Diluted428 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 Ended
January 31,
2021
February 2,
2020
(In millions)
Net income$1,378 $385 
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  
Other comprehensive income, net of tax1  
Comprehensive income$1,379 $385 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
4

Table of Contents
BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED

Fiscal Quarter Ended
January 31,
2021
February 2,
2020
(In millions)
Cash flows from operating activities:
Net income$1,378 $385 
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangible and right-of-use assets1,395 1,582 
Depreciation138 146 
Stock-based compensation444 545 
Deferred taxes and other non-cash taxes(149)(72)
Loss on debt extinguishment172 5 
Unrealized gain on investments(119) 
Non-cash restructuring, impairment and disposal charges15 11 
Non-cash interest expense22 30 
Other(5)19 
Changes in assets and liabilities, net of acquisitions and disposals:
Trade accounts receivable, net(247)(392)
Inventory51 40 
Accounts payable44 117 
Employee compensation and benefits(375)(217)
Other current assets and current liabilities408 346 
Other long-term assets and long-term liabilities(59)(223)
Net cash provided by operating activities3,113 2,322 
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired(8)(10,870)
Purchases of property, plant and equipment(114)(108)
Other (9)
Net cash used in investing activities(122)(10,987)
Cash flows from financing activities:
Proceeds from long-term borrowings9,904 15,381 
Repayment of debt(9,200)(4,537)
Other borrowings, net 718 
Payment of dividends(1,543)(1,372)
Shares repurchased for tax withholdings on vesting of equity awards(225)(169)
Issuance of common stock35 37 
Other(28)(4)
Net cash provided by (used in) financing activities(1,057)10,054 
Net change in cash and cash equivalents1,934 1,389 
Cash and cash equivalents at beginning of period7,618 5,055 
Cash and cash equivalents at end of period$9,552 $6,444 

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

Table of Contents

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY — UNAUDITED
Fiscal Quarter Ended January 31, 2021

8.00% Mandatory Convertible Preferred Stock
Common Stock Additional Paid-in CapitalRetained
Earnings
Accumulated
Other
Comprehensive
Loss
Total Stockholders’
Equity
SharesPar ValueSharesPar Value
(In millions)
Balance as of November 1, 20204 $ 407 $ $23,982 $ $(108)$23,874 
Net income— — — — — 1,378 — 1,378 
Other comprehensive income— — — — — — 1 1 
Dividends to common stockholders
— — — — (164)(1,304)— (1,468)
Dividends to preferred stockholders
— — — — — (74)— (74)
Common stock issued
— — 2  35 — — 35 
Stock-based compensation— — — — 444 — — 444 
Shares repurchased for tax withholdings on vesting of equity awards
— — (1) (217)— — (217)
Balance as of January 31, 20214 $ 408 $ $24,080 $ $(107)$23,973 

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

Table of Contents

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY — UNAUDITED
Fiscal Quarter Ended February 2, 2020

8.00% Mandatory Convertible Preferred Stock
Common Stock Additional
Paid-in Capital
Retained
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 

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

Table of Contents
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 in the semiconductor industry 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. Our infrastructure software solutions enable customers to plan, develop, automate, manage and secure applications across mainframe, distributed, mobile and cloud platforms. Our portfolio of mainframe and BizOps software solutions enables customers to leverage the benefits of agility, automation, insights, resiliency and security in managing business processes and technology investments. We offer a cyber security solutions portfolio, including endpoint, network, information and identity security solutions. We also offer mission critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products. Unless stated otherwise or the context otherwise requires, references to “Broadcom,” “we,” “our” and “us” mean Broadcom and its consolidated subsidiaries. We have two reportable segments: semiconductor solutions and infrastructure software.
Basis of Presentation
We operate on a 52- or 53-week fiscal year ending on the Sunday closest to October 31 in a 52-week year and the first Sunday in November in a 53-week year. Our fiscal year ending October 31, 2021 (“fiscal year 2021”) is a 52-week fiscal year. The first quarter of our fiscal year 2021 ended on January 31, 2021, the second quarter ends on May 2, 2021 and the third quarter ends on August 1, 2021. Our fiscal year ended November 1, 2020 (“fiscal year 2020”) was also a 52-week fiscal year.
The accompanying condensed consolidated financial statements include the accounts of Broadcom and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“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 November 1, 2020 condensed consolidated balance sheet data were derived from Broadcom’s audited consolidated financial statements included in its Annual Report on Form 10-K for fiscal year 2020 as filed with the Securities and Exchange Commission. All intercompany transactions and balances have been eliminated in consolidation. The operating results for the fiscal quarter ended January 31, 2021 are not necessarily indicative of the results that may be expected for fiscal year 2021, 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. The inputs into certain of these estimates and assumptions include the consideration of the economic impact of the COVID-19 pandemic. Actual results could differ materially from these estimates, and such differences could affect the results of operations reported in future periods. As the impact of the COVID-19 pandemic continues to develop, many of these estimates could require increased judgment and carry a higher degree of variability and volatility, and may change materially in future periods.
Reclassifications. Certain reclassifications have been made to the prior period condensed consolidated statement of cash flows to conform to the current period presentation. These reclassifications had no impact on previously reported net cash activities.
2. Revenue from Contracts with Customers
We account for a contract with a customer when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights can be identified, payment terms can be identified, the contract has commercial substance, and it is probable we will collect substantially all of the consideration we are entitled to. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised product or service to a customer.
8

Table of Contents
Disaggregation
We have considered (1) information that is regularly reviewed by our Chief Executive Officer, who has been identified as the Chief Operating Decision Maker (the “CODM”) as defined by the authoritative guidance on segment reporting, in evaluating financial performance and (2) disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues. The principal category we use to disaggregate revenues is the nature of our products and subscriptions and services, as presented in our condensed consolidated statements of operations. In addition, revenues by reportable segment are presented in Note 10. “Segment Information”.
The following tables present revenue disaggregated by type of revenue and by region for the periods presented:
Fiscal Quarter Ended January 31, 2021
AmericasAsia PacificEurope, the Middle East and AfricaTotal
(In millions)
Products$390 $4,320 $371 $5,081 
Subscriptions and services (a)
1,004 191 379 1,574 
Total$1,394 $4,511 $750 $6,655 

Fiscal Quarter Ended February 2, 2020
AmericasAsia PacificEurope, the Middle East and AfricaTotal
(In millions)
Products$440 $3,451 $313 $4,204 
Subscriptions and services (a)
1,099 169 386 1,654 
Total$1,539 $3,620 $699 $5,858 
________________________________
(a) Subscriptions and services predominantly includes software licenses with termination for convenience clauses.
Although we recognize revenue for the majority of our products when title and control transfer in Penang, Malaysia, we disclose net revenue by region based on the geographic shipment or delivery location specified by our distributors, original equipment manufacturer customers, contract manufacturers, channel partners, or software customers.
Contract Balances
Contract assets and contract liabilities balances were as follows:
Contract AssetsContract Liabilities
(In millions)
Balance as of November 1, 2020$158 $3,443 
Balance as of January 1, 2021$160 $3,833 
Changes in our contract assets and contract liabilities primarily result from the timing difference between our performance and the customer’s payment. We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. We recognize a contract asset when we transfer products or services to a customer and the right to consideration is conditional on something other than the passage of time. Accounts receivable are recorded when the customer has been billed or the right to consideration is unconditional. We recognize contract liabilities when we have received consideration or an amount of consideration is due from the customer and we have a future obligation to transfer products or services. Contract liabilities include amounts billed or collected and advanced payments on contracts or arrangements, which may include termination for convenience provisions. The amount of revenue recognized during the fiscal quarter ended January 31, 2021 that was included in the contract liabilities balance as of November 1, 2020 was $1,132 million. The amount of revenue recognized during the fiscal quarter ended February 2, 2020 that was included in the contract liabilities balance as of November 3, 2019 was $669 million.
Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied. It includes unearned revenue and amounts that will be invoiced and
9

Table of Contents
recognized as revenue in future periods and does not include contracts for subscriptions and services where the customer is not committed. The customer is not considered committed when termination for convenience without payment of a substantive penalty exists, either contractually or through customary business practice. The majority of our customer software contracts include termination for convenience clauses without a substantive penalty and are accordingly deemed to not be committed. Additionally, as a practical expedient, we have not included contracts that have an original duration of one year or less nor have we included contracts with sales-based and usage-based royalties promised in exchange for a license of intellectual property (“IP”).
Because the substantial majority of our customer software contracts allow our customers to terminate for convenience without a substantive penalty or have an original duration of one year or less, the total amount of the transaction price allocated to remaining performance obligations as of January 31, 2021 was not material. Since the majority of our software contracts are not deemed to be committed, although our customers generally do not exercise their termination for convenience rights, and the majority of the contracts we execute for products, as well as subscriptions and services, have a duration of one year or less, our remaining performance obligations are not indicative of revenue for future periods.
3. Acquisitions
Acquisition of the Symantec Corporation Enterprise Security Business
On November 4, 2019, we completed the purchase of certain assets and assumed certain liabilities of the Symantec Corporation Enterprise Security business (the “Symantec Business”), which was an established leader in cyber security, for $10.7 billion in cash (the “Symantec Asset Purchase”). We acquired the Symantec Business to expand our footprint of mission critical infrastructure software with our existing customer base.
Unaudited Pro Forma Information
The following unaudited pro forma financial information presents combined results of operations for the period presented, as if we had completed the Symantec Asset Purchase as of the beginning of our fiscal year ended November 3, 2019 (“fiscal year 2019”). The unaudited pro forma information includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired, adjustments to interest expense for the additional indebtedness incurred to complete the acquisition, restructuring charges related to the acquisition and transaction costs. The unaudited pro forma information presented below is for informational purposes only and is not necessarily indicative of our consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2019 or of the results of our future operations of the combined business.
Fiscal Quarter Ended
February 2,
2020
(In millions)
Pro forma net revenue$5,639 
Pro forma net income attributable to common stock$229 
Other Acquisitions
During the fiscal quarter ended February 2, 2020, we also completed three other acquisitions qualifying as business combinations for total consideration of $201 million, of which $109 million was allocated to goodwill and $46 million was allocated to intangible assets. We do not consider these acquisitions to be material, individually or in the aggregate, to our condensed consolidated statements of operations.
4. Supplemental Financial Information
Cash Equivalents
Cash equivalents included $2,728 million and $2,471 million of time deposits and $715 million and $790 million of money-market funds as of January 31, 2021 and November 1, 2020, respectively. For time deposits, carrying value approximates fair value due to the short-term nature of the instruments. The fair value of money-market funds, which was consistent with their carrying value, was determined using unadjusted prices in active, accessible markets for identical assets, and as such, they were classified as Level 1 assets in the fair value hierarchy.
Accounts Receivable Factoring
We sell certain of our trade accounts receivable on a non-recourse basis to third-party financial institutions pursuant to factoring arrangements. We account for these transactions as sales of receivables and present cash proceeds as cash provided by operating activities in the condensed consolidated statements of cash flows. Total trade accounts receivable sold under the
10

Table of Contents
factoring arrangements were $927 million and $901 million during the fiscal quarters ended January 31, 2021 and February 2, 2020, respectively. Factoring fees for the sales of receivables were recorded in other income (expense), net and were not material for any of the periods presented.
Inventory
January 31,
2021
November 1,
2020
(In millions)
Finished goods$306 $323 
Work-in-process552 558 
Raw materials94 122 
Total inventory$952 $1,003 
Other Current Assets
January 31,
2021
November 1,
2020
(In millions)
Prepaid expenses$513 $387 
Other (miscellaneous)759 590 
Total other current assets $1,272 $977 
Other Current Liabilities
January 31,
2021
November 1,
2020
(In millions)
Contract liabilities$3,098 $2,620 
Tax liabilities562 440 
Other (miscellaneous)778 771 
Total other current liabilities$4,438 $3,831 
Other Long-Term Liabilities
January 31,
2021
November 1,
2020
(In millions)
Unrecognized tax benefits$3,210 $3,185 
Contract liabilities735 823 
Other (miscellaneous)1,266 1,418 
Total other long-term liabilities$5,211 $5,426 
Supplemental Cash Flow Information
Fiscal Quarter Ended
January 31,
2021
February 2,
2020
(In millions)
Cash paid for interest$372 $381 
Cash paid for income taxes$147 $131 
At each of January 31, 2021 and February 2, 2020, $46 million of unpaid purchases of property, plant and equipment were included in accounts payable. Amounts reported as unpaid purchases are presented as cash outflows from investing activities for purchases of property, plant and equipment in the condensed consolidated statements of cash flows in the period in which they are paid.
11

Table of Contents
5. Goodwill and Intangible Assets
Goodwill
Semiconductor SolutionsInfrastructure SoftwareTotal
(In millions)
Balance as of November 1, 2020$25,959 $17,488 $43,447 
Acquisition 10 10 
Balance as of January 31, 2021$25,959 $17,498 $43,457 
Intangible Assets
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
(In millions)
As of January 31, 2021:   
Purchased technology$24,126 $(14,797)$9,329 
Customer contracts and related relationships8,392 (3,525)4,867 
Order backlog2,579 (1,965)614 
Trade names797 (341)456 
Other252 (124)128 
Intangible assets subject to amortization36,146 (20,752)15,394 
In-process research and development25 — 25 
Total$36,171 $(20,752)$15,419 
As of November 1, 2020:   
Purchased technology$24,119 $(13,925)$10,194 
Customer contracts and related relationships8,389 (3,179)5,210 
Order backlog2,579 (1,836)743 
Trade names797 (322)475 
Other252 (117)135 
Intangible assets subject to amortization36,136 (19,379)16,757 
In-process research and development25 — 25 
Total$36,161 $(19,379)$16,782 
12

Table of Contents
Based on the amount of intangible assets subject to amortization at January 31, 2021, the expected amortization expense for each of the next five years and thereafter was as follows:
Fiscal Year:Expected Amortization Expense
(In millions)
2021 (remainder)$4,047 
20224,367 
20233,237 
20242,367 
2025656 
Thereafter720 
Total$15,394 
The weighted-average remaining amortization periods by intangible asset category were as follows:
Amortizable intangible assets:January 31,
2021
(In years)
Purchased technology5
Customer contracts and related relationships4
Order backlog2
Trade names9
Other9

6. Net Income Per Share
Basic net income per share is computed by dividing net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stock by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period.
Diluted shares outstanding include the dilutive effect of unvested restricted stock units (“RSUs”), in-the-money stock options and employee stock purchase plan rights under the Broadcom Inc. Employee Stock Purchase Plan, as amended (“ESPP”), (collectively referred to as “equity awards”), as well as Mandatory Convertible Preferred Stock, as defined in Note 8. “Stockholders’ Equity.” Potentially dilutive shares whose effect would have been antidilutive are excluded from the computation of diluted net income per share.
The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and purchasing 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 shares. The dilutive effect of Mandatory Convertible Preferred Stock is calculated using the if-converted method. The if-converted method assumes that these securities were converted at the beginning of the reporting period to the extent that the effect is dilutive.
For each of the fiscal quarters ended January 31, 2021 and February 2, 2020, diluted net income per share excluded the potentially dilutive effect of 12 million shares of common stock issuable upon the conversion of Mandatory Convertible Preferred Stock as their effect was antidilutive.
13

Table of Contents
The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented:
Fiscal Quarter Ended
January 31,
2021
February 2,
2020
(In millions, except per share data)
Numerator:
Income from continuing operations$1,378 $380 
Dividends on preferred stock
(74)(74)
Income from continuing operations attributable to common stock
1,304 306 
Income from discontinued operations, net of income taxes, attributable to common stock 5 
Net income attributable to common stock$1,304 $311 
Denominator:
Weighted-average shares outstanding - basic407 398 
Dilutive effect of equity awards21 22 
Weighted-average shares outstanding - diluted428 420 

Basic income per share attributable to common stock:
Income per share from continuing operations$3.20 $0.77 
Income per share from discontinued operations 0.01 
Net income per share$3.20 $0.78 
Diluted income per share attributable to common stock:
Income per share from continuing operations$3.05 $0.73 
Income per share from discontinued operations 0.01 
Net income per share$3.05 $0.74 

14

Table of Contents
7. Borrowings
Effective Interest RateJanuary 31,
2021
November 1,
2020
(In millions, except percentages)
January 2021 Senior Notes - fixed rate
1.950% notes due February 2028
2.10 %$750 $ 
2.450% notes due February 2031
2.56 %2,750  
2.600% notes due February 2033
2.70 %1,750  
3.500% notes due February 2041
3.60 %3,000  
3.750% notes due February 2051
3.84 %1,750  
June 2020 Senior Notes - fixed rate
3.459% notes due September 2026
4.19 %1,695 1,695 
4.110% notes due September 2028
5.02 %2,222 2,222 
May 2020 Senior Notes - fixed rate
2.250% notes due November 2023
2.40 %112 1,000 
3.150% notes due November 2025
3.29 %2,250 2,250 
4.150% notes due November 2030
4.27 %2,750 2,750 
4.300% notes due November 2032
4.39 %2,000 2,000 
April 2020 Senior Notes - fixed rate
4.700% notes due April 2025
4.88 %2,250 2,250 
5.000% notes due April 2030
5.18 %2,250 2,250 
November 2019 Term Loans - floating rate
LIBOR plus 1.125% term loan due November 2022
1.54 % 1,819 
LIBOR plus 1.250% term loan due November 2024
1.56 % 4,069 
April 2019 Senior Notes - fixed rate
3.125% notes due April 2021
3.61 %274 525 
3.125% notes due October 2022
3.53 %188 693 
3.625% notes due October 2024
3.98 %1,044 1,044 
4.250% notes due April 2026
4.54 %2,500 2,500 
4.750% notes due April 2029
4.95 %3,000 3,000 
2017 Senior Notes - fixed rate
2.200% notes due January 2021
2.41 % 282 
3.000% notes due January 2022
3.21 %569 842 
2.650% notes due January 2023
2.78 %261 1,000 
3.625% notes due January 2024
3.74 %1,352 1,352 
3.125% notes due January 2025
3.23 %1,000 1,000 
3.875% notes due January 2027
4.02 %4,800 4,800 
3.500% notes due January 2028
3.60 %1,250 1,250 
Assumed CA Senior Notes - fixed rate
3.600% notes due August 2022
4.07 %144 283 
4.500% notes due August 2023
4.10 %143 250 
4.700% notes due March 2027
5.15 %350 350 
Other borrowings
2.500% - 4.500% notes due August 2022 - August 2034
2.59% - 4.55%