Broadcom Inc. Announces First Quarter Fiscal Year 2019 Financial Results and Quarterly Dividend

20 March 2019

SAN JOSE, Calif., March 14, 2019 /PRNewswire/ -- Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its first quarter of fiscal year 2019, ended February 3, 2019, and announced a quarterly dividend.

"We had a good start to 2019 as we continued to execute on our proven business model. Strong results in our networking business supported our semiconductor solutions segment, despite the anticipated sharp decline in wireless. Additionally, our infrastructure software segment performed extremely well as we made good progress with the CA business integration into Broadcom," said Hock Tan, President and CEO of Broadcom Inc. "Similar to our peers, we see a slowdown in China impacting demand. However, much of this was factored into our original guidance and we are maintaining our full year fiscal 2019 business outlook."

"We generated over $2 billion in free cash flow in the quarter, which represented 39% growth on a year on year basis," said Tom Krause, CFO of Broadcom Inc. "Consistent with our capital return plan, we returned $4.6 billion to stockholders in the quarter including $1.1 billion of cash dividends and $3.5 billion of share repurchases and eliminations. We remain focused on returning approximately $12 billion to stockholders in fiscal 2019 via a combination of cash dividends and stock buy backs and eliminations, while maintaining our investment grade credit rating."

First Quarter Fiscal Year 2019 GAAP Results from Continuing Operations

Net revenue was $5,789 million, an increase of 6.3 percent from $5,444 million in the previous quarter and an increase of 8.7 percent from $5,327 million in the same quarter last year.

Gross margin was $3,208 million, or 55.4 percent of net revenue. This compares with gross margin of $2,935 million, or 53.9 percent of net revenue, in the prior quarter, and gross margin of $2,628 million, or 49.3 percent of net revenue, in the same quarter last year.

Operating expenses were $2,653 million. This compares with $1,283 million in the prior quarter and $1,685 million in the same quarter last year.

Operating income was $555 million, or 9.6 percent of net revenue. This compares with operating income of $1,652 million, or 30.3 percent of net revenue, in the prior quarter, and operating income of $943 million, or 17.7 percent of net revenue, in the same quarter last year.

Net income, which includes the impact of discontinued operations, was $471 million, or $1.12 per diluted share. This compares with net income of $1,115 million, or $2.64 per diluted share, in the prior quarter, and net income of $6,566 million, or $14.62 per diluted share, in the same quarter last year.

Cash from operations was $2,132 million in the quarter, compared to $1,685 million in the same quarter last year.

First Quarter Fiscal Year 2019 GAAP Results















Change

(Dollars in millions, except per share data)



Q1 19



Q4 18



Q1 18



Q/Q



Y/Y

Net revenue



$  5,789



$  5,444



$  5,327



+6.3%



+8.7%

Gross margin



55.4%



53.9%



49.3%



+150bps



+610bps

Operating expenses



$  2,653



$  1,283



$  1,685



+$ 1,370



+$    968

Net income



$     471



$  1,115



$  6,566



-$    644



-$ 6,095

Net income attributable to noncontrolling interest



$          -



$          -



$     336



$         -



-$    336

Net income attributable to common stock



$     471



$  1,115



$  6,230



-$    644



-$ 5,759

Earnings per share - diluted



$    1.12



$    2.64



$  14.62



-$   1.52



-$ 13.50























The Company's cash and cash equivalents at the end of the first fiscal quarter were $5,093 million, compared to $4,292 million at the end of the prior quarter.

During the first fiscal quarter the Company generated $2,132 million in cash from operations and spent $3,513 million on share repurchases and eliminations consisting of $3,436 million in repurchases of 13.9 million shares and $77 million on withholding tax payments related to net settled equity awards that vested in the quarter (representing approximately 0.3 million shares withheld), as well as $99 million on capital expenditures.

On December 28, 2018, the Company paid a cash dividend of $2.65 per share of common stock, totaling $1,067 million.

First Quarter Fiscal Year 2019 Non-GAAP Results From Continuing Operations

The differences between the Company's GAAP and non-GAAP results are described generally under "Non-GAAP Financial Measures" below, and presented in detail in the financial reconciliation tables attached to this release.

Gross margin from continuing operations was $4,133 million, or 71.4 percent of net revenue. This compares with gross margin from continuing operations of $3,725 million, or 68.4 percent of net revenue, in the prior quarter, and $3,454 million, or 64.8 percent of net revenue, in the same quarter last year.

Operating income from continuing operations was $3,052 million, or 52.7 percent of net revenue. This compares with operating income from continuing operations of $2,862 million, or 52.5 percent of net revenue, in the prior quarter, and $2,571 million, or 48.2 percent of net revenue, in the same quarter last year.

Net income from continuing operations was $2,446 million, or $5.55 per diluted share. This compares with net income of $2,546 million, or $5.85 per diluted share, in the prior quarter, and net income of $2,345 million, or $5.12 per diluted share, in the same quarter last year.

Free cash flow from operations, defined as cash from operations less capital expenditures, was $2,033 million in the quarter, compared to $1,465 million in the same quarter last year.

First Quarter Fiscal Year 2019 Non-GAAP Results















Change

(Dollars in millions, except per share data)



Q1 19



Q4 18



Q1 18



Q/Q



Y/Y

Gross margin



71.4%



68.4%



64.8%



+300bps



+660bps

Operating expenses



$     1,081



$        863



$        883



+$   218



+$   198

Net income



$     2,446



$     2,546



$     2,345



-$   100



+$   101

Earnings per share - diluted



$       5.55



$       5.85



$       5.12



-$  0.30



+$  0.43

Other Quarterly Data

Net revenue by segment:

































Change

(Dollars in millions)



Q1 19



Q4 18



Q1 18



Q/Q



Y/Y

Semiconductor solutions



$ 4,374



76%



$  4,874



90%



$  4,955



93%



-10%



-12%

Infrastructure software



1,403



24



513



9



328



6



173%



328%

Intellectual property licensing



12



-



57



1



44



1



-79%



-73%

Total net revenue



$ 5,789



100%



$  5,444



100%



$  5,327



100%









Fiscal Year 2019 Business Outlook

Based on current business trends and conditions, the outlook for continuing operations for fiscal year 2019, ending November 3, 2019, including contributions from CA, is expected to be as follows: 





GAAP



Reconciling Items



Non-GAAP

Net revenue



$24,500M



-



$24,500M

Operating margin



17.6%



 $8,180M 



51.0%

Net interest expense and other



 $1,250M 



-



 $1,250M 

Provision for income taxes



3%



8%



11%

 

  • Non-GAAP operating margin excludes an expected $5,210 million of amortization of acquisition-related intangible assets, $2.0 billion of stock-based compensation expense, $750 million of restructuring charges, and $220 million of acquisition-related costs; and
  • Non-GAAP tax provision is 8% higher than GAAP due to the tax effects of the projected reconciling items noted above.

Capital expenditures for the fiscal year are expected to be approximately $550 million. For the fiscal year, depreciation is expected to be $600 million and total intangible amortization is expected to be approximately $5,235 million.

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. Among other things, this guidance is based on an initial estimate of purchase accounting adjustments and allocations, all of which are subject to revision. The guidance excludes the impact of any mergers, acquisitions, divestiture and stock repurchase activity that may occur during fiscal year 2019. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Quarterly Dividend

The Company's Board of Directors has approved a quarterly cash dividend of $2.65 per share.

The dividend is payable on March 29, 2019 to stockholders of record at the close of business (5:00 p.m.) Eastern Time on March 21, 2019.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the first quarter of fiscal year 2019, ended February 3, 2019, and discuss guidance for fiscal year 2019, today at 2:00 p.m. Pacific Time. Those wishing to access the call should dial (866) 310-8712; International +1 (720) 634-2946. The passcode is 5732459. A replay of the call will be accessible for one week after the call. To access the replay dial (855) 859-2056; International +1 (404) 537-3406; and reference the passcode: 5732459. A webcast of the conference call will also be available in the "Investors" section of Broadcom's website at www.broadcom.com.

Basis of Presentation

Broadcom Inc. is the successor to Broadcom Limited for financial reporting purposes effective as of the close of trading on April 4, 2018. Information provided for fiscal periods beginning with the fiscal quarter ended May 6, 2018, relates to Broadcom Inc. and for prior fiscal periods relates to Broadcom Limited. Unless the context otherwise requires, references in this press release to "Broadcom," "the Company," "we," "our," "us" and similar terms are to Broadcom Inc. from and after the effective time of the redomiciliation and, prior to that time, are to our predecessor, Broadcom Limited. The Company's financial results include contributions from CA, Inc.'s continuing operations starting in the first fiscal quarter of 2019. The financial results from businesses that have been classified as discontinued operations in the Company's financial statements are not included in the results presented below, unless otherwise stated.

Due to the Company's 52/53 week reporting cycle, fiscal year 2018 included an extra week in the first quarter, compared to fiscal year 2019.

Non-GAAP Financial Measures

In addition to GAAP reporting, Broadcom provides investors with net revenue, net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information includes the effect, where applicable, of purchase accounting on revenue, and excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring, impairment and disposal charges, acquisition-related costs, including integration costs, purchase accounting effect on inventory, litigation settlements, impairment on investment, debt-related costs, gain (loss) on extinguishment of debt, unrealized gains on investments, income (loss) from discontinued operations and non-GAAP tax reconciling adjustments. Management does not believe that these items are reflective of the Company's underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company's operations, and benchmarking performance externally against the Company's competitors. The exclusion of these and other similar items from Broadcom's non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual. Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom's free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

Broadcom believes this non-GAAP financial information provides additional insight into the Company's on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company's on-going operations and enable more meaningful period to period comparisons. These non-GAAP measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release.

About Broadcom Inc.

Broadcom Inc. (NASDAQ: AVGO), a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Our solutions include data center networking and storage, enterprise and mainframe software focused on automation, monitoring and security, smartphone components, telecoms and factory automation.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance and other statements identified by words such as "will", "expect", "believe", "anticipate", "estimate", "should", "intend", "plan", "potential", "predict" "project", "aim", and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of the management of Broadcom, as well as assumptions made by, and information currently available to, such management, current market trends and market conditions and involve risks and uncertainties, many of which are outside the Company's and management's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements.

Particular uncertainties that could materially affect future results include risks associated with: our acquisition of CA, including (1) potential difficulties in employee retention, (2) unexpected costs, charges or expenses, and (3) our ability to successfully integrate CA's business and achieve the anticipated benefits of the transaction; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; our dependence on contract manufacturing and outsourced supply chain; any other acquisitions we may make, including integrating acquired companies with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; our dependency on a limited number of suppliers; dependence on and risks associated with distributors of our products; dependence on senior management and our ability to attract and retain qualified personnel; global economic conditions and concerns; quarterly and annual fluctuations in operating results; the amount and frequency of our stock repurchases; cyclicality in the semiconductor industry or in our target markets; our competitive performance and ability to continue achieving design wins with our customers, as well as the timing of any design wins; prolonged disruptions of our or our contract manufacturers' manufacturing facilities or other significant operations; our ability to improve our manufacturing efficiency and quality; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to maintain or improve gross margin; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; sales to our government clients; availability of third party software used in our products; use of open source code sources in our products; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims; our ability to sell to new types of customers and to keep pace with technological advances; market acceptance of the end products into which our products are designed; our ability to protect against a breach of security systems; changes in accounting standards; fluctuations in foreign exchange rates; our provision for income taxes and overall cash tax costs, legislation that may impact our overall cash tax costs and our ability to maintain tax concessions in certain jurisdictions; and other events and trends on a national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature.

Our filings with the SEC, which you may obtain for free at the SEC's website at http://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:

Broadcom Inc.

Beatrice F. Russotto

Investor Relations

408-433-8000

investor.relations@broadcom.com

 

 

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(IN MILLIONS, EXCEPT PER SHARE DATA)





































 Fiscal Quarter Ended 







February 3,



November 4, 



February 4,







2019



2018



2018



















Net revenue



$              5,789



$              5,444



$              5,327



Cost of revenue:















  Cost of revenue



1,692



1,746



1,899



  Purchase accounting effect on inventory



-



-



70



  Amortization of acquisition-related intangible assets



833



762



715



  Restructuring charges



56



1



15



















   Total cost of revenue



2,581



2,509



2,699



















Gross margin



3,208



2,935



2,628



















Research and development



1,133



948



925



Selling, general and administrative



471



237



291



Amortization of acquisition-related intangible assets



476



67



339



Restructuring, impairment and disposal charges



573



17



130



Litigation settlements



-



14



-



















   Total operating expenses



2,653



1,283



1,685



















Operating income



555



1,652



943



Interest expense



(345)



(148)



(183)



Impairment on investment



-



(106)



-



Other income, net



68



24



35



















Income from continuing operations before income taxes



278



1,422



795



Provision for (benefit from) income taxes



(203)



307



(5,786)



















Income from continuing operations



481



1,115



6,581



Loss from discontinued operations, net of income taxes



(10)



-



(15)



















Net income



471



1,115



6,566



Net income attributable to noncontrolling interest (1)



-



-



336



















Net income attributable to common stock



$                 471



$              1,115



$              6,230



















Basic income per share:















  Income per share from continuing operations



$                1.20



$                2.71



$              15.23



  Income (loss) per share from discontinued operations



(0.03)



-



(0.03)



  Net income per share



$                1.17



$                2.71



$              15.20



















Diluted income per share(2):















  Income per share from continuing operations



$                1.15



$                2.64



$              14.66



  Income (loss) per share from discontinued operations



(0.03)



-



(0.04)



  Net income per share



$                1.12



$                2.64



$              14.62



















Shares used in per share calculations:















  Basic



401



412



410



  Diluted



419



423



426



















Stock-based compensation expense included in continuing operations:















  Cost of revenue



$                   34



$                   23



$                   20



  Research and development



311



225



203



  Selling, general and administrative



120



69



76



   Total stock-based compensation expense



$                 465



$                 317



$                 299



































(1) In connection with the redomiciliation to the United States on April 4, 2018, or the Redomiciliation, all outstanding exchangeable limited partnership units, or LP Units, in Broadcom Cayman L.P. were exchanged for common stock of Broadcom on a one-for-one basis and the noncontrolling interest, or NCI, was eliminated. Net income attributable to NCI prior to the Redomiciliation represents approximately 5% of net income attributable to LP Units.



(2) For the fiscal quarter ended February 4, 2018, diluted income per share excluded the potentially dilutive effect of the exchange of LP Units as their effect was antidilutive. There were no LP Units outstanding during the fiscal quarters ended February 3, 2019 or November 4, 2018 due to the Redomiciliation.

 

BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)





































 Fiscal Quarter Ended 







February 3,



November 4, 



February 4,







2019



2018



2018



































Net revenue on GAAP basis



$              5,789



$              5,444



$              5,327



  Acquisition-related purchase accounting revenue adjustment (1)



-



4



4



















Net revenue on non-GAAP basis



$              5,789



$              5,448



$              5,331



































Gross margin on GAAP basis



$              3,208



$              2,935



$              2,628



  Acquisition-related purchase accounting revenue adjustment (1)



-



4



4



  Purchase accounting effect on inventory



-



-



70



  Amortization of acquisition-related intangible assets



833



762



715



  Stock-based compensation expense



34



23



20



  Restructuring charges



56



1



15



  Acquisition-related costs



2



-



2



















Gross margin on non-GAAP basis



$              4,133



$              3,725



$              3,454



































Research and development on GAAP basis



$              1,133



$                 948



$                 925



  Stock-based compensation expense



311



225



203



  Acquisition-related costs



2



1



3



















Research and development on non-GAAP basis



$                 820



$                 722



$                 719



































Selling, general and administrative expense on GAAP basis



$                 471



$                 237



$                 291



  Stock-based compensation expense



120



69



76



  Acquisition-related costs



90



27



51



















Selling, general and administrative expense on non-GAAP basis



$                 261



$                 141



$                 164



































Total operating expenses on GAAP basis



$              2,653



$              1,283



$              1,685



  Amortization of acquisition-related intangible assets



476



67



339



  Stock-based compensation expense



431



294



279



  Restructuring, impairment and disposal charges



573



17



130



  Litigation settlements



-



14



-



  Acquisition-related costs



92



28



54



















Total operating expenses on non-GAAP basis



$              1,081



$                 863



$                 883



































Operating income on GAAP basis



$                 555



$              1,652



$                 943



  Acquisition-related purchase accounting revenue adjustment (1)



-



4



4



  Purchase accounting effect on inventory



-



-



70



  Amortization of acquisition-related intangible assets



1,309



829



1,054



  Stock-based compensation expense



465



317



299



  Restructuring, impairment and disposal charges



629



18



145



  Litigation settlements



-



14



-



  Acquisition-related costs



94



28



56



















Operating income on non-GAAP basis



$              3,052



$              2,862



$              2,571



































Interest expense on GAAP basis



$                (345)



$                (148)



$                (183)



  Debt-related costs



-



-



32



















Interest expense on non-GAAP basis



$                (345)



$                (148)



$                (151)



































Other income, net on GAAP basis



$                   68



$                   24



$                   35



  Unrealized gains on investments



(27)



-



-



















Other income, net on non-GAAP basis



$                   41



$                   24



$                   35



































Income from continuing operations before income taxes on GAAP basis



$                 278



$              1,422



$                 795



  Acquisition-related purchase accounting revenue adjustment (1)



-



4



4



  Purchase accounting effect on inventory



-



-



70



  Amortization of acquisition-related intangible assets



1,309



829



1,054



  Stock-based compensation expense



465



317



299



  Restructuring, impairment and disposal charges



629



18



145



  Litigation settlements



-



14



-



  Acquisition-related costs



94



28



56



  Impairment on investment



-



106



-



  Debt-related costs



-



-



32



  Unrealized gains on investments



(27)



-



-



















Income before income taxes on non-GAAP basis



$              2,748



$              2,738



$              2,455



































Provision for (benefit from) income taxes on GAAP basis



$                (203)



$                 307



$             (5,786)



  Non-GAAP tax reconciling adjustments



505



(115)



5,896



















Provision for income taxes on non-GAAP basis



$                 302



$                 192



$                 110



































Net income on GAAP basis



$                 471



$              1,115



$              6,566



  Acquisition-related purchase accounting revenue adjustment (1)



-



4



4



  Purchase accounting effect on inventory



-



-



70



  Amortization of acquisition-related intangible assets



1,309



829



1,054



  Stock-based compensation expense



465



317



299



  Restructuring, impairment and disposal charges



629



18



145



  Litigation settlements



-



14



-



  Acquisition-related costs



94



28



56



  Impairment on investment



-



106



-



  Debt-related costs



-



-



32



  Unrealized gains on investments



(27)



-



-



  Non-GAAP tax reconciling adjustments



(505)



115



(5,896)



  Discontinued operations, net of income taxes



10



-



15



















Net income on non-GAAP basis



$              2,446



$              2,546



$              2,345



















































Shares used in per share calculation - diluted on GAAP basis



419



423



426



  Non-GAAP adjustment (2)



22



12



32



















Shares used in per share calculation - diluted on non-GAAP basis



441



435



458



































Net income on non-GAAP basis



$              2,446



$              2,546



$              2,345



  Interest expense on non-GAAP basis



345



148



151



  Provision for income taxes on non-GAAP basis



302



192



110



  Depreciation



143



132



126



















Adjusted EBITDA



$              3,236



$              3,018



$              2,732



































Net cash provided by operating activities



$              2,132



$              2,635



$              1,685



  Purchases of property, plant and equipment



(99)



(106)



(220)



















Free cash flow



$              2,033



$              2,529



$              1,465







































 Fiscal Quarter Ending 















May 5,











Expected fully diluted share count:



2019



























  Shares used in per share calculation - diluted on GAAP basis



422











    Non-GAAP adjustment (2)



28



























  Shares used in per share calculation - diluted on non-GAAP basis



450



























(1) Amounts represent licensing revenue not included in GAAP net revenue as a result of the effect of purchase accounting for acquisitions.



(2) Non-GAAP adjustment for number of shares used in the diluted per share calculations excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. Non-GAAP adjustment also includes the impact of LP Units that are anti-dilutive on a GAAP basis for the fiscal quarter ended February 4, 2018.  

 

BROADCOM INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(IN MILLIONS)





























February 3,



November 4, 







2019



2018















ASSETS























Current assets:











  Cash and cash equivalents



$              5,093



$              4,292



  Trade accounts receivable, net



3,677



3,325



  Inventory



1,074



1,124



  Other current assets



760



366















    Total current assets



10,604



9,107















Long-term assets:











  Property, plant and equipment, net



2,684



2,635



  Goodwill



36,647



26,913



  Intangible assets, net



21,493



10,762



  Other long-term assets



682



707















    Total assets



$            72,110



$            50,124



























LIABILITIES AND STOCKHOLDERS' EQUITY























Current liabilities:











  Accounts payable



$                 738



$                 811



  Employee compensation and benefits



463



715



  Current portion of long-term debt



3,537



-



  Other current liabilities



3,611



812















    Total current liabilities



8,349



2,338















Long-term liabilities:











  Long-term debt



34,104



17,493



  Other long-term liabilities



6,433



3,636















    Total liabilities



48,886



23,467



























Stockholders' equity:











  Common stock and additional paid-in capital



23,081



23,285



  Retained earnings



259



3,487



  Accumulated other comprehensive loss



(116)



(115)















    Total stockholders' equity



23,224



26,657















       Total liabilities and stockholders' equity



$            72,110



$            50,124



 

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(IN MILLIONS)





















 Fiscal Quarter Ended 







February 3,



November 4, 



February 4,







2019



2018



2018



Cash flows from operating activities:















Net income



$                 471



$              1,115



$              6,566



Adjustments to reconcile net income to net cash provided by operating activities:













  Amortization of intangible assets



1,316



836



1,058



  Depreciation



143



132



126



  Stock-based compensation



465



317



299



  Deferred taxes and other non-cash taxes



(379)



242



(5,832)



  Impairment on investment



-



106



-



  Non-cash restructuring, impairment and disposal charges



92



8



5



  Non-cash interest expense



13



6



6



  Other



(21)



15



3



  Changes in assets and liabilities, net of acquisitions and disposals:















    Trade accounts receivable, net



68



(312)



199



    Inventory



50



92



250



    Accounts payable



(169)



28



(403)



    Employee compensation and benefits



(458)



93



(376)



    Contributions to defined benefit pension plans



-



-



(129)



    Other current assets and current liabilities



506



163



284



    Other long-term assets and long-term liabilities



35



(206)



(371)



















Net cash provided by operating activities



2,132



2,635



1,685



































Cash flows from investing activities:















  Acquisitions of businesses, net of cash acquired



(16,027)



(7)



(4,786)



  Business sale proceeds (repayments)



957



(9)



782



  Purchases of property, plant and equipment



(99)



(106)



(220)



  Proceeds from disposals of property, plant and equipment



-



1



237



  Purchases of investments



-



-



(244)



  Other



(24)



3



4



















Net cash used in investing activities



(15,193)



(118)



(4,227)



































Cash flows from financing activities:















  Proceeds from long-term borrowings



17,896



-



-



  Repayment of debt



-



(117)



(856)



  Payment of debt issuance costs



(46)



-



-



  Other borrowings



531



-



-



  Dividend and distribution payments



(1,067)



(723)



(755)



  Repurchases of common stock - repurchase program



(3,436)



(1,533)



-



  Shares repurchased for tax witholdings on vesting of equity awards



(77)



(21)



-



  Issuance of common stock



62



59



34



  Other



(1)



(26)



(9)



















Net cash provided by (used in) financing activities



13,862



(2,361)



(1,586)



































Net change in cash and cash equivalents



801



156



(4,128)



Cash and cash equivalents at the beginning of period



4,292



4,136



11,204



Cash and cash equivalents at end of period



$              5,093



$              4,292



$              7,076



















Supplemental disclosure of cash flow information:















Cash paid for interest



$                 423



$                     2



$                 232



Cash paid for income taxes



$                   95



$                 189



$                 109



 

Cision View original content:http://www.prnewswire.com/news-releases/broadcom-inc-announces-first-quarter-fiscal-year-2019-financial-results-and-quarterly-dividend-300812752.html

SOURCE Broadcom Inc.