Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Feb. 04, 2018 | Mar. 02, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Broadcom Ltd | |
Entity Central Index Key | 1,649,338 | |
Current Fiscal Year End Date | --11-04 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Feb. 4, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Broadcom Limited [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 410,736,181 | |
Broadcom Cayman L.P. [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | Broadcom Cayman L.P. | |
Entity Central Index Key | 1,649,345 | |
Current Fiscal Year End Date | --11-04 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Feb. 4, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Broadcom Cayman L.P. [Member] | General Partner [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 390,952,394 | |
Broadcom Cayman L.P. [Member] | Limited Partner [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,090,052 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Millions | Feb. 04, 2018 | Oct. 29, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 7,076 | $ 11,204 |
Trade accounts receivable, net | 2,459 | 2,448 |
Inventory | 1,291 | 1,447 |
Other current assets | 394 | 724 |
Total current assets | 11,220 | 15,823 |
Long-term assets: | ||
Property, plant and equipment, net | 2,747 | 2,599 |
Goodwill | 26,899 | 24,706 |
Intangible assets, net | 13,171 | 10,832 |
Other long-term assets | 507 | 458 |
Total assets | 54,544 | 54,418 |
Current liabilities: | ||
Accounts payable | 816 | 1,105 |
Employee compensation and benefits | 333 | 626 |
Current portion of long-term debt | 117 | 117 |
Other current liabilities | 704 | 681 |
Total current liabilities | 1,970 | 2,529 |
Long-term liabilities: | ||
Long-term debt | 17,475 | 17,431 |
Other long-term liabilities | 6,018 | 11,272 |
Total liabilities | 25,463 | 31,232 |
Commitments and Contingencies | ||
Stockholders' Equity/Partners' Capital | ||
Ordinary shares, no par value | 20,851 | 20,505 |
Non-economic voting preference shares, no par value | 0 | 0 |
Retained earnings (accumulated deficit) | 5,132 | (129) |
Accumulated other comprehensive loss | (82) | (91) |
Total Broadcom Limited shareholders’ equity | 25,901 | 20,285 |
Noncontrolling interest | 3,180 | 2,901 |
Total shareholders’ equity | 29,081 | 23,186 |
Total liabilities and shareholders’ equity/partners' capital | 54,544 | 54,418 |
Broadcom Cayman L.P. [Member] | ||
Current assets: | ||
Cash and cash equivalents | 6,886 | 11,017 |
Trade accounts receivable, net | 2,459 | 2,448 |
Inventory | 1,291 | 1,447 |
Other current assets | 481 | 808 |
Total current assets | 11,117 | 15,720 |
Long-term assets: | ||
Property, plant and equipment, net | 2,747 | 2,599 |
Goodwill | 26,899 | 24,706 |
Intangible assets, net | 13,171 | 10,832 |
Other long-term assets | 507 | 458 |
Total assets | 54,441 | 54,315 |
Current liabilities: | ||
Accounts payable | 816 | 1,105 |
Employee compensation and benefits | 333 | 626 |
Current portion of long-term debt | 117 | 117 |
Other current liabilities | 704 | 681 |
Total current liabilities | 1,970 | 2,529 |
Long-term liabilities: | ||
Long-term debt | 17,475 | 17,431 |
Other long-term liabilities | 6,018 | 11,272 |
Total liabilities | 25,463 | 31,232 |
Commitments and Contingencies | ||
Stockholders' Equity/Partners' Capital | ||
Common partnership units | 25,880 | 20,273 |
Exchangeable limited partnership units | 3,180 | 2,901 |
Accumulated other comprehensive loss | (82) | (91) |
Total partners’ capital | 28,978 | 23,083 |
Total liabilities and shareholders’ equity/partners' capital | $ 54,441 | $ 54,315 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets - Unaudited - (Parenthetical) - shares | Feb. 04, 2018 | Oct. 29, 2017 |
Shares, Issued | 409,983,907 | 408,732,155 |
Shares, Outstanding | 409,983,907 | 408,732,155 |
Special Voting Shares Issued | 22,107,689 | 22,145,603 |
Special Voting Shares Outstanding | 22,107,689 | 22,145,603 |
Broadcom Cayman L.P. [Member] | General Partner [Member] | ||
Shares, Issued | 390,934,757 | 390,896,843 |
Shares, Outstanding | 390,934,757 | 390,896,843 |
Broadcom Cayman L.P. [Member] | Limited Partner [Member] | ||
Shares, Issued | 22,107,689 | 22,145,603 |
Shares, Outstanding | 22,107,689 | 22,145,603 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - Unaudited - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | |
Net revenue | $ 5,327 | $ 4,139 |
Cost of products sold: | ||
Cost of products sold | 1,899 | 1,573 |
Purchase accounting effect on inventory | 70 | 0 |
Amortization of acquisition-related intangible assets | 715 | 559 |
Restructuring charges | 15 | 6 |
Total cost of products sold | 2,699 | 2,138 |
Gross margin | 2,628 | 2,001 |
Research and development | 925 | 808 |
Selling, general and administrative | 291 | 201 |
Amortization of acquisition-related intangible assets | 339 | 440 |
Restructuring, impairment and disposal charges | 130 | 46 |
Total operating expenses | 1,685 | 1,495 |
Operating income | 943 | 506 |
Interest expense | (183) | (111) |
Loss on extinguishment of debt | 0 | (159) |
Other income, net | 35 | 31 |
Income from continuing operations before income taxes | 795 | 267 |
Provision for (benefit from) income taxes | (5,786) | 10 |
Income from continuing operations | 6,581 | 257 |
Loss from discontinued operations, net of income taxes | (15) | (5) |
Net income | 6,566 | 252 |
Net income attributable to noncontrolling interest | 336 | 13 |
Net income attributable to ordinary shares | $ 6,230 | $ 239 |
Basic income (loss) per share attributable to ordinary shares: | ||
Income per share from continuing operations | $ 15.23 | $ 0.61 |
Loss per share from discontinued operations | (0.03) | (0.01) |
Net income per share | 15.20 | 0.60 |
Diluted income (loss) per share attributable to ordinary shares: | ||
Income per share from continuing operations | 14.66 | 0.58 |
Loss per share from discontinued operations | (0.04) | (0.01) |
Net income per share | $ 14.62 | $ 0.57 |
Weighted-average shares: | ||
Basic | 410 | 399 |
Diluted | 426 | 439 |
Common Stock, Dividends, Declared and Paid per Share | $ 1.75 | $ 1.02 |
Broadcom Cayman L.P. [Member] | ||
Net revenue | $ 5,327 | $ 4,139 |
Cost of products sold: | ||
Cost of products sold | 1,899 | 1,573 |
Purchase accounting effect on inventory | 70 | 0 |
Amortization of acquisition-related intangible assets | 715 | 559 |
Restructuring charges | 15 | 6 |
Total cost of products sold | 2,699 | 2,138 |
Gross margin | 2,628 | 2,001 |
Research and development | 925 | 808 |
Selling, general and administrative | 291 | 201 |
Amortization of acquisition-related intangible assets | 339 | 440 |
Restructuring, impairment and disposal charges | 130 | 46 |
Total operating expenses | 1,685 | 1,495 |
Operating income | 943 | 506 |
Interest expense | (183) | (111) |
Loss on extinguishment of debt | 0 | (159) |
Other income, net | 35 | 31 |
Income from continuing operations before income taxes | 795 | 267 |
Provision for (benefit from) income taxes | (5,786) | 10 |
Income from continuing operations | 6,581 | 257 |
Loss from discontinued operations, net of income taxes | (15) | (5) |
Net income | 6,566 | 252 |
General Partner's interest in net income | 6,230 | 239 |
Limited Partners' interest in net income | $ 336 | $ 13 |
Cash distributions paid per exchangeable limited partnership unit | $ 1.75 | $ 1.02 |
Cash distribution paid to General Partner | $ 717 | $ 408 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Millions | 3 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | |
Net income | $ 6,566 | $ 252 |
Unrealized gain on available-for-sale investments | 9 | 0 |
Other comprehensive income | 9 | 0 |
Comprehensive income | 6,575 | 252 |
Comprehensive income attributable to noncontrolling interest | 336 | 13 |
Comprehensive income attributable to ordinary shares | 6,239 | 239 |
Broadcom Cayman L.P. [Member] | ||
Net income | 6,566 | 252 |
Unrealized gain on available-for-sale investments | 9 | 0 |
Other comprehensive income | 9 | 0 |
Comprehensive income | $ 6,575 | $ 252 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Millions | 3 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 6,566 | $ 252 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,184 | 1,114 |
Share-based compensation | 299 | 202 |
Deferred income taxes and other non-cash taxes | (5,832) | (25) |
Non-cash portion of debt extinguishment loss | 0 | 159 |
Non-cash restructuring, impairment and disposal charges | 5 | 17 |
Amortization of debt issuance costs and accretion of debt discount | 6 | 8 |
Other | 3 | (18) |
Changes in assets and liabilities, net of acquisitions and disposals: | ||
Trade accounts receivable, net | 199 | 234 |
Inventory | 250 | 65 |
Accounts payable | (403) | (137) |
Employee compensation and benefits | (376) | (181) |
Contributions to defined benefit pension plans | (129) | (6) |
Other current assets and current liabilities | 284 | (237) |
Other long-term assets and long-term liabilities | (371) | (94) |
Net cash provided by operating activities | 1,685 | 1,353 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (4,786) | 0 |
Proceeds from sales of businesses | 782 | 10 |
Purchases of property, plant and equipment | (220) | (325) |
Proceeds from disposals of property, plant, and equipment | 237 | 0 |
Purchases of investments | (244) | 0 |
Other | 4 | (4) |
Net cash used in investing activities | (4,227) | (319) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 13,446 |
Repayment of debt | (856) | (13,668) |
Payment of debt issuance costs | 0 | (3) |
Dividend and distribution payments | (755) | (431) |
Issuance of ordinary shares | 34 | 61 |
Payment of capital lease obligations | (6) | 0 |
Other | (3) | 0 |
Net cash used in financing activities | (1,586) | (595) |
Net change in cash and cash equivalents | (4,128) | 439 |
Cash and cash equivalents at the beginning of period | 11,204 | 3,097 |
Cash and cash equivalents at end of period | 7,076 | 3,536 |
Broadcom Cayman L.P. [Member] | ||
Cash flows from operating activities: | ||
Net income | 6,566 | 252 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,184 | 1,114 |
Share-based compensation | 299 | 202 |
Deferred income taxes and other non-cash taxes | (5,832) | (25) |
Non-cash portion of debt extinguishment loss | 0 | 159 |
Non-cash restructuring, impairment and disposal charges | 5 | 17 |
Amortization of debt issuance costs and accretion of debt discount | 6 | 8 |
Other | 3 | (18) |
Changes in assets and liabilities, net of acquisitions and disposals: | ||
Trade accounts receivable, net | 199 | 234 |
Inventory | 250 | 65 |
Accounts payable | (403) | (137) |
Employee compensation and benefits | (376) | (181) |
Contributions to defined benefit pension plans | (129) | (6) |
Other current assets and current liabilities | 284 | (237) |
Other long-term assets and long-term liabilities | (371) | (94) |
Net cash provided by operating activities | 1,685 | 1,353 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (4,786) | 0 |
Proceeds from sales of businesses | 782 | 10 |
Purchases of property, plant and equipment | (220) | (325) |
Proceeds from disposals of property, plant, and equipment | 237 | 0 |
Purchases of investments | (244) | 0 |
Other | 4 | (4) |
Net cash used in investing activities | (4,227) | (319) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 13,446 |
Repayment of debt | (856) | (13,668) |
Payment of debt issuance costs | 0 | (3) |
Distributions paid to unit holders | (755) | (431) |
Capital transactions with General Partner | 31 | (29) |
Payment of capital lease obligations | (6) | 0 |
Other | (3) | 0 |
Net cash used in financing activities | (1,589) | (685) |
Net change in cash and cash equivalents | (4,131) | 349 |
Cash and cash equivalents at the beginning of period | 11,017 | 3,044 |
Cash and cash equivalents at end of period | $ 6,886 | $ 3,393 |
Overview, Basis of Presentation
Overview, Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Feb. 04, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview, Basis of Presentation and Significant Accounting Policies | Overview, Basis of Presentation and Significant Accounting Policies Overview Broadcom Limited, or Broadcom, is a leading designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products. We have a history of innovation and offer thousands of products that are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. We have four reportable segments: wired infrastructure, wireless communications, enterprise storage and industrial & other, which align with our principal target markets. Broadcom is organized under the laws of the Republic of Singapore. Broadcom Cayman L.P., or the Partnership, is an exempted limited partnership formed under the laws of the Cayman Islands. Broadcom is the Partnership’s sole General Partner and owns a majority interest (by vote and value) in the Partnership represented by common partnership units, or Common Units. The balance of the partnership units represents exchangeable limited partnership units, or LP Units, the holders of which are referred to as the Limited Partners. As General Partner, Broadcom has the exclusive right, power and authority to manage, control, administer and operate the business and affairs and to make decisions regarding the undertaking and business of the Partnership in accordance with the Partnership’s Amended and Restated Exempted Limited Partnership Agreement, or Partnership Agreement, as amended from time to time, and applicable laws. We have initiated the process to change the ultimate parent company of Broadcom to a Delaware corporation, or the Redomiciliation, through a statutory procedure known as a scheme of arrangement under Singapore law, or the Scheme of Arrangement, to be implemented pursuant to the implementation agreement between us and a newly established Delaware corporation (also named Broadcom Limited and referred to herein as Broadcom-Delaware). The Scheme of Arrangement is subject to the approval of the High Court of the Republic of Singapore and our shareholders. In connection with the Redomiciliation, we intend to execute an amendment to the Partnership Agreement pursuant to which all outstanding LP Units will be mandatorily exchanged for shares of common stock of Broadcom-Delaware on a one -for-one basis. See Note 8. “Partners’ Capital” for more information. The condensed consolidated financial statements and accompanying notes are being presented in a combined report being filed by two separate registrants: Broadcom and the Partnership. The differences in the condensed consolidated financial statements relate to the noncontrolling interest which represents the outstanding LP Units and transactions between Broadcom and the Partnership, which we account for as capital transactions. Refer to Note 7. “Shareholders’ Equity” and Note 8. “Partners’ Capital” for additional information. Unless stated otherwise or the context otherwise requires, references to “Broadcom,” “we,” “our” and “us” mean Broadcom Limited and its consolidated subsidiaries, including Broadcom Cayman L.P. References to the “Partnership” mean Broadcom Cayman L.P. and its consolidated subsidiaries. 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 November 4, 2018 , or fiscal year 2018 , is a 53-week fiscal year, with our first fiscal quarter containing 14 weeks. The first quarter of our fiscal year 2018 ended on February 4, 2018, the second quarter ends on May 6, 2018 and the third quarter ends on August 5, 2018. Our fiscal year ended October 29, 2017 , or fiscal year 2017 , was a 52-week fiscal year. On November 17, 2017, we acquired Brocade Communications Systems, Inc., or Brocade. The unaudited condensed consolidated financial statements include the results of operations of Brocade commencing as of the acquisition date. See Note 2. “Acquisitions” for additional information. The accompanying condensed consolidated financial statements of Broadcom and the Partnership include the accounts of Broadcom and the Partnership, respectively, and their subsidiaries, and have been prepared by us in accordance with generally accepted accounting principles in the United States, or GAAP, for interim financial information. The financial information included herein is unaudited, and reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The October 29, 2017 condensed consolidated balance sheet data were derived from Broadcom’s audited consolidated financial statements included in Broadcom’s Annual Report on Form 10-K for fiscal year 2017 , or 2017 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or SEC, but do not include all disclosures required by GAAP. All intercompany transactions and balances have been eliminated in consolidation. As a result of Broadcom’s controlling interest in the Partnership, we consolidate the financial results of the Partnership and present a noncontrolling interest for the portion of the Partnership we do not own in our condensed consolidated financial statements. Net income attributable to noncontrolling interest in the condensed consolidated statements of operations represents the portion of income attributable to the economic interest in the Partnership owned by the Limited Partners. The operating results for the fiscal quarter ended February 4, 2018 are not necessarily indicative of the results that may be expected for fiscal year 2018 , or for any other future period. Significant Accounting Policies Use of estimates. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods. Reclassifications . Certain reclassifications have been made to the prior period condensed consolidated statement of cash flows. These reclassifications had no impact on the previously reported net cash activities. Recently Adopted Accounting Guidance In the first quarter of fiscal year 2018, we early adopted an accounting standards update issued by the Financial Accounting Standards Board, or FASB, in October 2016 related to the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory. The standard requires a modified-retrospective transition method by means of a cumulative-effect adjustment as of the beginning of the period in which the guidance is adopted. The adoption of this guidance resulted in a decrease in current and long-term prepaid tax expense of $67 million and $199 million , respectively, an increase of $252 million to our accumulated deficit and a decrease of $14 million to our non-controlling interest. Recent Accounting Guidance Not Yet Adopted In August 2016, the FASB issued guidance related to the classification of certain transactions on the statement of cash flows. This guidance will be effective for the first quarter of our fiscal year 2019; however, early adoption is permitted. We will present our statements of cash flows in accordance with this guidance for the affected transactions occurring subsequent to adoption. In February 2016, the FASB issued guidance related to the accounting for leases, which among other things, requires a lessee to recognize lease assets and lease liabilities on the balance sheet for operating leases. This guidance will be effective for the first quarter of our fiscal year 2020. The new guidance is required to be applied using a modified retrospective approach. We are evaluating the impact this guidance will have on our condensed consolidated financial statements. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new standard creates a single source of revenue guidance under GAAP, eliminating industry-specific guidance. The underlying principle of the standard is to recognize revenue when a customer obtains control of promised goods or services at an amount that reflects the consideration that is expected to be received in exchange for those goods or services. An entity should apply a five-step approach for recognizing revenue as follows: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the entity satisfies a performance obligation. The standard also requires increased disclosures including the nature, amount, timing, and uncertainty of revenues and cash flows related to contracts with customers. The standard allows two methods of adoption: (i) retrospectively to each prior period presented (“full retrospective method”), or (ii) retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption ("modified retrospective method"). We plan to adopt the new standard using the modified retrospective method at the beginning of the first quarter of fiscal year 2019. We have established a cross-functional team to assess the potential impact of the new revenue standard and are on schedule in establishing new accounting policies, processes, and internal controls necessary to support the requirements of the new standard. While we are still finalizing our analysis to quantify the adoption impact of the provisions of the new standard, the exact impact of the new standard will be dependent on facts and circumstances at adoption and could vary from quarter to quarter. |
Acquisition
Acquisition | 3 Months Ended |
Feb. 04, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions Acquisition of Brocade On November 17, 2017, or the Brocade Acquisition Date, we acquired Brocade, or the Brocade Merger. Brocade was a supplier of networking hardware, software and services, including Fibre Channel Storage Area Network, or FC SAN, solutions and Internet Protocol Networking, or IP Networking, solutions. We acquired Brocade to enhance our position as a provider of enterprise storage connectivity solutions, broaden our portfolio for enterprise storage, and to increase our ability to address the evolving needs of our original equipment manufacturer, or OEM, customers. We financed the Brocade Merger with a portion of the net proceeds from the issuance of the 2017 Senior Notes, as defined and discussed in further detail in Note 6. “Borrowings,” as well as cash on hand. Purchase Consideration (In millions) Cash paid for outstanding Brocade common stock $ 5,298 Cash paid by Broadcom to retire Brocade’s term loan 701 Cash paid for Brocade equity awards 31 Fair value of partially vested assumed equity awards 8 Total purchase consideration 6,038 Less: cash acquired 1,250 Total purchase consideration, net of cash acquired $ 4,788 We assumed all unvested Brocade stock options, restricted stock units, or RSUs, and performance stock units, or PSUs, held by continuing employees. The portion of the fair value of partially vested equity awards associated with prior service of Brocade employees represents a component of the total consideration as presented above. All vested in-the-money Brocade stock options, after giving effect to any acceleration, were cashed out upon the completion of the Brocade Merger. RSUs and PSUs were valued based on Broadcom’s ordinary share price as of the Brocade Acquisition Date. We allocated the purchase price to tangible and identified intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identified intangible assets acquired was based on estimates and assumptions made by management at the time of acquisition. As additional information becomes available, such as finalization of the estimated fair value of tax related items, we may further revise our preliminary purchase price allocation during the remainder of the measurement period (which will not exceed 12 months from the Brocade Acquisition Date). Any such revisions or changes may be material. The following table presents our preliminary allocation of the total purchase price, net of cash acquired: Estimated Fair Value (In millions) Current assets $ 1,295 Goodwill 2,180 Intangible assets 3,396 Other long-term assets 83 Total assets acquired 6,954 Current portion of long-term debt (856 ) Other current liabilities (366 ) Long-term debt (38 ) Other long-term liabilities (906 ) Total liabilities assumed (2,166 ) Fair value of net assets acquired $ 4,788 Goodwill is primarily attributable to the assembled workforce and anticipated synergies and economies of scale expected from the integration of the Brocade business. The synergies include certain cost savings, operating efficiencies, and other strategic benefits projected to be achieved as a result of the Brocade Merger. Goodwill is not expected to be deductible for tax purposes. Current assets included assets held-for-sale related to Brocade’s IP Networking business, which was not aligned with our strategic objectives and was sold during our fiscal quarter ended February 4, 2018. The sale of Brocade’s IP Networking business is discussed further in Note 3. “Supplemental Financial Information.” Current assets also included assets held-for-sale for Brocade’s headquarters, which was sold for $224 million during the first quarter of fiscal year 2018, with no resulting gain or loss. We leased back a portion of the campus at market rental rates for six months. Our results of continuing operations for the fiscal quarter ended February 4, 2018 included $328 million of net revenue attributable to Brocade. It is impracticable to determine the effect on net income attributable to Brocade as we have integrated a substantial portion of Brocade into our ongoing operations. Transaction costs of $21 million related to the Brocade Merger were included in selling, general and administrative expense for the fiscal quarter ended February 4, 2018 . Intangible Assets Fair Value Weighted-Average Amortization Periods (In millions) (In years) Developed technology $ 2,925 10 Customer contracts and related relationships 255 11 Trade name and other 61 6 Total identified finite-lived intangible assets 3,241 In-process research and development 155 N/A Total identified intangible assets $ 3,396 Developed technology relates to products for FC SAN applications. We valued the developed technology using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the developed technology less charges representing the contribution of other assets to those cash flows. The economic useful life was determined based on the technology cycle related to each developed technology, as well as the cash flows over the forecast period. Customer contracts and related relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of Brocade. Customer contracts and related relationships were valued using the distributor method and the with-and-without-method under the income approach. The distributor method determines the fair value by measuring the economic profits generated by an intermediary, which in our case represents OEM customers. In the with-and-without method, the fair value was measured by the difference between the present values of the cash flows with and without the existing customers in place over the period of time necessary to reacquire the customers. In both instances, the economic useful life was determined based on historical customer turnover rates. Trade name relates to the “Brocade” trade name. The fair value was determined by applying the relief-from-royalty method under the income approach. This valuation method is based on the application of a royalty rate to forecasted revenue under the trade name. The economic useful life was determined based on the expected life of the trade name and the cash flows anticipated over the forecasted periods. The fair value of in-process research and development, or IPR&D, was determined using the multi-period excess earnings method under the income approach. This method reflects the present value of the projected cash flows that are expected to be generated by the IPR&D, less charges representing the contribution of other assets to those cash flows. We believe the amounts of purchased intangible assets recorded above represent the fair values of, and approximate the amounts a market participant would pay for, these intangible assets as of the Brocade Acquisition Date. The following table summarizes the details of IPR&D by category as of the Brocade Acquisition Date: Description IPR&D Percentage of Completion Estimated Cost to Complete Expected Release Date (By Fiscal Year) (Dollars in millions) Directors $ 64 72 % $ 45 2018 Switches $ 50 81 % $ 21 2018 Embedded $ 31 74 % $ 22 2018 Networking software $ 10 73 % $ 27 2018 The discount rate of 11% was applied to the projected cash flows to reflect the risk related to these IPR&D projects. The discount rate represents a premium of 1% over the weighted-average cost of capital to reflect the higher risk and uncertainty of the cash flows for IPR&D relative to the overall businesses. Unaudited Pro Forma Information The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if Brocade had been acquired as of the beginning of fiscal year 2017. The unaudited pro forma information includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired, adjustments to share-based compensation expense, the purchase accounting effect on inventory acquired, restructuring charges related to the acquisition and transaction costs. For fiscal year 2017, non-recurring pro forma adjustments directly attributable to the Brocade Merger included (i) the purchase accounting effect of inventory acquired of $70 million and (ii) acquisition costs of $69 million . 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 2017 or of the results of our future operations of the combined business. Fiscal Quarter Ended February 4, January 29, (In millions) Pro forma net revenue $ 5,447 $ 4,639 Pro forma net income attributable to ordinary shares $ 6,333 $ 134 |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Feb. 04, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Cash Equivalents Cash equivalents included $3,782 million and $6,002 million of time deposits as of February 4, 2018 and October 29, 2017 , respectively. As of February 4, 2018 and October 29, 2017 , cash equivalents also included $200 million and $401 million of money-market funds, 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. Inventory February 4, October 29, (In millions) Finished goods $ 590 $ 562 Work-in-process 583 696 Raw materials 118 189 Total inventory $ 1,291 $ 1,447 Accrued Rebate Activity Fiscal Quarter Ended February 4, January 29, (In millions) Beginning balance $ 124 $ 317 Charged as a reduction of revenue 39 64 Reversal of unclaimed rebates (4 ) (19 ) Payments (80 ) (126 ) Ending balance $ 79 $ 236 Other Long-Term Liabilities February 4, October 29, (In millions) Deferred tax liabilities (a) $ 1,243 $ 10,019 Unrecognized tax benefits (a) (b) 4,212 1,011 Other 563 242 Total other long-term liabilities $ 6,018 $ 11,272 ________________________________ (a) Refer to Note 9. “Income Taxes” for additional information regarding these balances. (b) Includes accrued interest and penalties. Discontinued Operations On December 1, 2017, we sold Brocade’s IP Networking business to ARRIS International plc, or ARRIS, for cash consideration of $800 million , adjusted for closing working capital balances. In connection with this sale, we indemnified ARRIS for $116 million of potential income tax liabilities. We are providing transitional services as short-term assistance to ARRIS in assuming the operations of the purchased business. We do not have any material continuing involvement with this business and have presented its results in discontinued operations. The following table summarizes the selected financial information of discontinued operations: Fiscal Quarter Ended February 4, January 29, (In millions) Net revenue $ 18 $ 2 Loss from discontinued operations $ (15 ) $ (5 ) Supplemental Cash Flow Information Fiscal Quarter Ended February 4, January 29, (In millions) Cash paid for interest $ 232 $ 102 Cash paid for income taxes $ 109 $ 97 At February 4, 2018 and October 29, 2017 , we had $112 million and $122 million , respectively, of unpaid purchases of property, plant and equipment included in accounts payable and other current liabilities. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Feb. 04, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets Goodwill Wired Infrastructure Wireless Communications Enterprise Storage Industrial & Other Total (In millions) Balance as of October 29, 2017 $ 17,622 $ 5,945 $ 995 $ 144 $ 24,706 Brocade Merger 70 — 2,110 — 2,180 Other acquisition 13 — — — 13 Balance as of February 4, 2018 $ 17,705 $ 5,945 $ 3,105 $ 144 $ 26,899 During the fiscal quarter ended February 4, 2018 , we made one immaterial acquisition in addition to the Brocade Merger. Intangible Assets Gross Carrying Amount Accumulated Amortization Net Book Value (In millions) As of February 4, 2018: Purchased technology $ 15,554 $ (4,533 ) $ 11,021 Customer contracts and related relationships 1,792 (716 ) 1,076 Trade names 578 (130 ) 448 Other 146 (36 ) 110 Intangible assets subject to amortization 18,070 (5,415 ) 12,655 IPR&D 516 — 516 Total $ 18,586 $ (5,415 ) $ 13,171 As of October 29, 2017: Purchased technology $ 12,724 $ (4,265 ) $ 8,459 Customer contracts and related relationships 4,240 (3,100 ) 1,140 Trade names 528 (117 ) 411 Other 135 (25 ) 110 Intangible assets subject to amortization 17,627 (7,507 ) 10,120 IPR&D 712 — 712 Total $ 18,339 $ (7,507 ) $ 10,832 Based on the amount of intangible assets subject to amortization at February 4, 2018 , the expected amortization expense for each of the next five years and thereafter was as follows: Fiscal Year: Expected Amortization Expense (In millions) 2018 (remainder) $ 2,492 2019 2,846 2020 2,390 2021 1,893 2022 1,389 Thereafter 1,645 Total $ 12,655 The weighted-average amortization periods remaining by intangible asset category were as follows: Amortizable intangible assets: February 4, 2018 (In years) Purchased technology 6 Customer contracts and related relationships 6 Trade names 12 Other 10 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Feb. 04, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Net Income Per Share Broadcom Basic net income per share is computed by dividing net income attributable to ordinary shares by the weighted-average number of Broadcom ordinary shares outstanding during the period. Diluted net income per share is computed by dividing net income attributable to ordinary shares and, if the LP Units are dilutive, net income attributable to noncontrolling interest by the weighted-average number of Broadcom ordinary shares and potentially dilutive shares outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money share options, RSUs and employee share purchase plan rights under the Amended and Restated Broadcom Limited Employee Share Purchase Plan, or ESPP, (together referred to as equity awards). Diluted shares outstanding also included Broadcom ordinary shares issuable upon exchange of the LP Units (refer to Note 8. “Partners’ Capital” for additional information) for the fiscal quarter ended January 29, 2017 . The dilutive effect of equity awards is calculated based on the average share price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising share options and to purchase shares under the ESPP and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase ordinary shares. The dilutive effect of the LP Units was calculated using the if-converted method. The if-converted method assumes that the LP Units were converted at the beginning of the reporting period. Diluted net income per share for the fiscal quarter ended February 4, 2018 excluded the potentially dilutive effect of the exchange of LP Units for 22 million ordinary shares as their effect was antidilutive. 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 February 4, January 29, Numerator - Basic: (In millions, except per share data) Income from continuing operations $ 6,581 $ 257 Less: Income from continuing operations attributable to noncontrolling interest 337 13 Income from continuing operations attributable to ordinary shares 6,244 244 Loss from discontinued operations, net of income taxes (15 ) (5 ) Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest (1 ) — Loss from discontinued operations, net of income taxes, attributable to ordinary shares (14 ) (5 ) Net income attributable to ordinary shares $ 6,230 $ 239 Numerator - Diluted: Income from continuing operations $ 6,244 $ 257 Loss from discontinued operations, net of income taxes (14 ) (5 ) Net income $ 6,230 $ 252 Denominator: Weighted-average ordinary shares outstanding - basic 410 399 Dilutive effect of equity awards 16 17 Exchange of noncontrolling interest for ordinary shares — 23 Weighted-average ordinary shares outstanding - diluted 426 439 Basic income per share attributable to ordinary shares: Income per share from continuing operations $ 15.23 $ 0.61 Loss per share from discontinued operations (0.03 ) (0.01 ) Net income per share $ 15.20 $ 0.60 Diluted income per share attributable to ordinary shares: Income per share from continuing operations $ 14.66 $ 0.58 Loss per share from discontinued operations (0.04 ) (0.01 ) Net income per share $ 14.62 $ 0.57 The Partnership Income per unit for the Partnership is not required to be presented as its Common Units and LP Units are not publicly traded. |
Borrowings
Borrowings | 3 Months Ended |
Feb. 04, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings As of February 4, 2018: As of October 29, 2017: Effective Interest Rate Aggregate Principal Amount Effective Interest Rate Aggregate Principal Amount (In millions, except for percentages) 2017 Senior Notes Fixed rate 2.375% notes due January 2020 2.615 % $ 2,750 2.615 % $ 2,750 Fixed rate 2.200% notes due January 2021 2.406 % 750 2.406 % 750 Fixed rate 3.000% notes due January 2022 3.214 % 3,500 3.214 % 3,500 Fixed rate 2.650% notes due January 2023 2.781 % 1,000 2.781 % 1,000 Fixed rate 3.625% notes due January 2024 3.744 % 2,500 3.744 % 2,500 Fixed rate 3.125% notes due January 2025 3.234 % 1,000 3.234 % 1,000 Fixed rate 3.875% notes due January 2027 4.018 % 4,800 4.018 % 4,800 Fixed rate 3.500% notes due January 2028 3.596 % 1,250 3.596 % 1,250 17,550 17,550 Assumed Senior Notes Fixed rate 2.70% notes due November 2018 2.70 % 117 2.70 % 117 Fixed rate 2.50% - 4.50% notes due August 2022 - August 2034 2.50% - 4.50% 22 2.50% - 4.50% 22 139 139 Brocade Convertible Notes Fixed rate 1.375% convertible notes due January 2020 0.628 % 38 — Total principal amount outstanding 17,727 17,689 Less: Unaccreted discount and unamortized debt issuance costs (135 ) (141 ) Total carrying value of debt $ 17,592 $ 17,548 Senior Notes and Assumed Senior Notes In fiscal year 2017, we completed the issuance and sale of senior unsecured notes, or the 2017 Senior Notes, in an aggregate principal amount of $17,550 million . Our 2017 Senior Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured, unsubordinated basis by Broadcom and the Partnership, or Parent Guarantor, collectively the Guarantors, subject to certain release conditions described in the indentures governing the 2017 Senior Notes, or the 2017 Indentures. Each series of 2017 Senior Notes pays interest semi-annually in cash in arrears on January 15 and July 15 of each year. We may redeem all or a portion of our 2017 Senior Notes at any time prior to their maturity, subject to a specified make-whole premium as set forth in the 2017 Indentures. In the event of a change of control triggering event, holders of our 2017 Senior Notes will have the right to require us to purchase for cash all or a portion of their 2017 Senior Notes at a redemption price of 101% of the aggregate principal amount of such 2017 Senior Notes plus accrued and unpaid interest. The 2017 Indentures also contain covenants that restrict, among other things, the ability of Broadcom and its subsidiaries to incur certain secured debt and consummate certain sale and leaseback transactions, and the ability of Broadcom Corporation, or BRCM, and Broadcom Cayman Finance Limited, or the Subsidiary Issuers, and the Guarantors, to merge, consolidate or sell all or substantially all of their assets. In connection with the issuance of the 2017 Senior Notes, we entered into registration rights agreements, pursuant to which we were obligated to use commercially reasonable efforts to file with the SEC, and cause to be declared effective, a registration statement with respect to an offer to exchange, or the Exchange Offer, each series of 2017 Senior Notes for notes that are registered with the SEC, or the Registered Notes, with substantially identical terms. On January 9, 2018 , we launched the Exchange Offer and on February 21, 2018 , substantially all of the 2017 Senior Notes were tendered and exchanged for Registered Notes in the Exchange Offer. We were in compliance with all of the covenants related to the 2017 Senior Notes and senior unsecured notes assumed in the connection with acquisition of BRCM, or the Assumed Senior Notes, as of February 4, 2018 . Acquired Brocade Debt As a result of the Brocade Merger, we assumed $575 million in aggregate principal amount of Brocade’s 1.375% convertible senior unsecured notes due 2020 , or the Brocade Convertible Notes. The Brocade Merger was a “fundamental change” as well as a “make-whole fundamental change” as defined under the terms of the indenture governing the Brocade Convertible Notes. Accordingly, the holders of the Brocade Convertible Notes received the right to require us to repurchase their notes for cash. In the first quarter of fiscal year 2018, we repurchased $537 million in aggregate principal amount for $548 million at a conversion rate of $1,018 for each $1,000 of principal surrendered for conversion. As of February 4, 2018 , the outstanding principal amount of the Brocade Convertible Notes was $38 million . The remaining outstanding Brocade Convertible Notes are convertible into cash at a conversion rate of $812 for each $1,000 of principal. We were in compliance with all of the covenants related to the Brocade Convertible Notes as of February 4, 2018 . We also assumed $300 million in aggregate principal amount of Brocade’s 4.625% senior unsecured notes due 2023 . On January 16, 2018 , we called and redeemed all of these outstanding notes for a total payment of $308 million , including the redemption price. Fair Value of Debt As of February 4, 2018 , the estimated aggregate fair value of the 2017 Senior Notes, the Assumed Senior Notes and the Brocade Convertible Notes was $17,183 million and was primarily classified as Level 2 as we used quoted prices from less active markets. Future Principal Payments of Debt The future scheduled principal payments for the outstanding 2017 Senior Notes, Assumed Senior Notes and Brocade Convertible Notes as of February 4, 2018 were as follows: Fiscal Year: Future Scheduled Principal Payments (In millions) 2018 (remainder) $ 117 2019 — 2020 2,788 2021 750 2022 3,509 Thereafter 10,563 Total $ 17,727 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Feb. 04, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Noncontrolling Interest The Limited Partners held a noncontrolling interest of approximately 5% in the Partnership through their ownership of LP Units as of both February 4, 2018 and October 29, 2017 . Broadcom adjusts the net income in its condensed consolidated statements of operations to exclude the noncontrolling interest’s proportionate share of the results. In addition, Broadcom presents the proportionate share of equity attributable to the noncontrolling interest as a separate component of shareholders’ equity. On January 30, 2017, Broadcom registered 23 million ordinary shares to allow for Limited Partners to exchange their LP Units pursuant to the Partnership Agreement. Effective February 1, 2017, subject to certain additional requirements and potential deferrals as set forth in the Partnership Agreement, Limited Partners have the right to require the Partnership to repurchase some or all of such Limited Partner’s LP Units for consideration, as determined by Broadcom in its sole discretion, of either one Broadcom ordinary share or a cash amount as determined under the Partnership Agreement for each LP Unit submitted for repurchase. During the fiscal quarter ended February 4, 2018 , in accordance with the terms of the Partnership Agreement, the Partnership exchanged LP Units, pursuant to exchange notices, for the same number of newly issued Broadcom ordinary shares valued at $5 million . The exchanges represented increases in our ownership interest in the Partnership and were accounted for as equity transactions, with no gain or loss recorded in Broadcom’s condensed consolidated statements of operations. Pursuant to the terms of the Partnership Agreement, upon the exchange of LP Units, each such LP Unit was cancelled and the Partnership issued the same number of Common Units to the General Partner concurrently with the exchange. Dividends Fiscal Quarter Ended February 4, January 29, (In millions, except per share data) Cash dividends paid per ordinary share $ 1.75 $ 1.02 Cash dividends paid to ordinary shareholders $ 717 $ 408 Share-Based Compensation Expense Fiscal Quarter Ended February 4, January 29, (In millions) Cost of products sold $ 20 $ 14 Research and development 203 141 Selling, general and administrative 76 46 Total share-based compensation expense (a) $ 299 $ 201 ________________________________ (a) Does not include $1 million of share-based compensation expense related to discontinued operations recognized during the fiscal quarter ended January 29, 2017 . Equity Incentive Award Plans A summary of time- and market-based RSU activity is as follows: Number of RSUs Outstanding Weighted- Average Grant Date Fair Value Per Share (In millions, except per share data) Balance as of October 29, 2017 18 $ 163.42 Granted 1 $ 235.77 Vested — * $ 131.14 Forfeited — * $ 141.36 Balance as of February 4, 2018 19 $ 170.59 ________________________________ * Represents less than 0.5 million shares. The aggregate fair value of time- and market-based RSUs that vested during the fiscal quarter ended February 4, 2018 was $121 million . Total unrecognized compensation cost related to unvested RSUs as of February 4, 2018 was $2,190 million , which is expected to be recognized over the remaining weighted-average service period of 2.9 years. A summary of time- and market-based share option activity is as follows: Number of Options Outstanding Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Life (In years) Aggregate Intrinsic Value (In millions, except years and per share data) Balance as of October 29, 2017 10 $ 49.54 Exercised — * $ 44.75 $ 163 Cancelled — * $ 78.66 Balance as of February 4, 2018 10 $ 49.88 2.62 $ 1,786 Fully vested as of February 4, 2018 9 $ 47.79 2.56 $ 1,651 Fully vested and expected to vest as of February 4, 2018 10 $ 49.88 2.62 $ 1,786 ________________________________ * Represents less than 0.5 million shares. The total unrecognized compensation cost related to unvested share options as of February 4, 2018 was $8 million , which is expected to be recognized over the remaining weighted-average service period of 0.5 years. |
Partners' Capital
Partners' Capital | 3 Months Ended |
Feb. 04, 2018 | |
Equity [Abstract] | |
Partners' Capital [Text Block] | Partners’ Capital Effective February 1, 2017, subject to certain additional requirements and potential deferrals as set forth in the Partnership Agreement, Limited Partners have the right to require the Partnership to repurchase some or all of such Limited Partner’s LP Units for consideration, as determined by Broadcom in its sole discretion, of either one Broadcom ordinary share or a cash amount as determined under the Partnership Agreement for each LP Unit submitted for repurchase. During the fiscal quarter ended February 4, 2018 , in accordance with the terms of the Partnership Agreement, the Partnership exchanged LP Units, pursuant to exchange notices for the same number of newly issued Broadcom ordinary shares valued at $5 million . The issuances of shares were accounted for as a capital contribution by Broadcom to the Partnership. The exchanges of LP Units were recorded as increases to the Common Units balance and reductions to the LP Units balance within partners' capital of the Partnership’s condensed consolidated balance sheet. Pursuant to the terms of the Partnership Agreement, upon the exchange of LP Units, each such LP Unit was cancelled and the Partnership issued the same number of Common Units to the General Partner concurrently with the exchange. In connection with the Redomiciliation, we intend to execute an amendment, or the Mandatory Exchange Amendment, to the Partnership Agreement, pursuant to which, immediately prior to the completion of the Scheme of Arrangement, all outstanding LP Units, other than any LP Units held by us and our subsidiaries, will be mandatorily exchanged for shares of common stock of Broadcom-Delaware on a one -for-one basis. As a result, all Limited Partners will become common stockholders of Broadcom-Delaware. In addition, all related outstanding non-economic voting preference shares in the capital of Broadcom will be automatically redeemed upon the exchange of the LP Units in accordance with the Mandatory Exchange Amendment. The Mandatory Exchange Amendment is subject to the approval of the Limited Partners in accordance with the terms of the Partnership Agreement. The Scheme of Arrangement is not conditioned on the approval of the Mandatory Exchange Amendment and therefore the Redomiciliation will occur whether or not the Mandatory Exchange Amendment has been executed. If the Scheme of Arrangement occurs without the Mandatory Exchange Amendment having been approved and executed, LP Units of the Partnership will remain outstanding and will thereafter be exchangeable for cash or shares of common stock of Broadcom-Delaware in accordance with the terms of the Partnership Agreement, and the holders of LP Units will continue to have the right to vote alongside the common stockholders of Broadcom-Delaware in accordance with the terms of the Voting Trust Agreement, dated February 1, 2016, by and among Broadcom, the Partnership and Computershare Trust Company, N.A., as the registered shareholder of all of the outstanding non-economic voting preference shares and as trustee thereunder. Share-Based Compensation Expense Share-based incentive awards are provided to employees and Broadcom’s non-employee directors under the terms of various Broadcom equity incentive plans. Refer to Note 7. “Shareholders’ Equity” for further details. Capital Transactions with General Partner Fiscal Quarter Ended February 4, January 29, (In millions) Capital transactions made by General Partner to Partnership $ 42 $ 61 Distributions Fiscal Quarter Ended February 4, January 29, (In millions, except per LP Unit) Cash distributions paid to General Partner $ 717 $ 408 Cash distributions paid per LP Unit $ 1.75 $ 1.02 Cash distributions paid to Limited Partners $ 38 $ 23 |
Income Taxes
Income Taxes | 3 Months Ended |
Feb. 04, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the fiscal quarter ended February 4, 2018 , our income tax benefit was $5,786 million compared to a provision for income taxes of $10 million for the fiscal quarter ended January 29, 2017 . The income tax benefit was principally a result of provisional income tax benefits realized from the enactment of the U.S. Tax Cuts and Jobs Act, or the 2017 Tax Reform Act, on December 22, 2017, and took into account the net deferred tax liabilities established in connection with the Brocade Merger. The 2017 Tax Reform Act makes significant changes to the U.S. Internal Revenue Code, including, but not limited to, a decrease in the U.S. corporate tax rate from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a participation exemption regime, and a one-time transition tax, or the Transition Tax, on the mandatory deemed repatriation of accumulated non-U.S. earnings of U.S. controlled foreign corporations as of December 31, 2017. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118, or SAB 118, to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Reform Act. Based on our understanding and interpretation of the 2017 Tax Reform Act and available guidance, including SAB 118, we recorded a total provisional benefit of $5,810 million , which we believe was a reasonable estimate as of February 4, 2018 . The provisional benefit includes $88 million related to the remeasurement of certain deferred tax assets and liabilities, which was based on the tax rates at which they are expected to be reversed in the future as a result of the 2017 Tax Reform Act. The provisional benefit also includes $5,722 million related to the Transition Tax, which was primarily due to a reduction of $10,392 million in our federal deferred income tax liabilities on accumulated non-U.S. earnings, partially offset by $2,547 million of federal provisional long-term Transition Tax payable and $2,179 million of unrecognized federal tax benefits related to the Transition Tax. The long-term Transition Tax payable was reduced by the utilization of tax attributes and prepaid taxes, and is payable over eight years. The utilization of tax attributes also increased unrecognized tax benefits with the use of reserved attributes. Additional work is necessary to complete a more detailed analysis of historical foreign earnings, as well as potential correlative adjustments. Any subsequent adjustment to these amounts, which must be completed within 12 months of the enactment of the 2017 Tax Reform Act, will be recorded as an adjustment to provision for (benefit from) income taxes in the period in which the analysis is complete. In connection with the Brocade Merger, we established $845 million of net deferred tax liabilities on the excess of book basis over the tax basis of acquired identified intangible assets and investments in certain foreign subsidiaries that have not been indefinitely reinvested, partially offset by acquired tax attributes. The net deferred tax liabilities are based upon certain assumptions underlying our preliminary purchase price allocation. Upon finalization of the purchase price allocation, additional adjustments to the amount of our net deferred taxes may be required, provided we are within the measurement period. The provision for income taxes for the fiscal quarter ended January 29, 2017 was primarily due to an increase in tax provision caused by a change in the jurisdictional mix of income from continuing operations before income taxes partially offset by a discrete benefit from the recognition of $42 million of excess tax benefits on share-based awards that were vested and/or exercised during the fiscal quarter ended January 29, 2017. Uncertain Tax Positions The balance of gross unrecognized tax benefits was $4,564 million and $2,256 million as of February 4, 2018 and October 29, 2017 , respectively. Gross unrecognized tax benefits increased by $2,308 million compared to the balance as of October 29, 2017 , primarily due to the recognition of uncertain tax positions related to the Transition Tax and to a lesser extent, the Brocade Merger, which were initially estimated as of the Brocade Acquisition Date. We continue to reevaluate these items with any adjustments to our preliminary estimates recognized, provided we are within the measurement period and we continue to collect information in order to determine their estimated values. Accrued interest and penalties are included in other long-term liabilities on the condensed consolidated balance sheets. As of February 4, 2018 and October 29, 2017 , the combined amount of cumulative accrued interest and penalties was approximately $150 million and $132 million , respectively. A portion of our unrecognized tax benefits will affect our effective tax rate if they are recognized upon favorable resolution of the uncertain tax positions. As of February 4, 2018 and October 29, 2017 , approximately $4,714 million and $2,388 million , respectively, of the unrecognized tax benefits, including accrued interest and penalties, would affect our effective tax rate if favorably resolved. We are subject to Singapore income tax examination for fiscal years 2013 and later. Certain of our acquired companies are subject to tax examinations in major jurisdictions outside Singapore for fiscal years 2010 and later. It is possible that our existing unrecognized tax benefits may change by up to $250 million as a result of lapses of statutes of limitations for certain audit periods and/or audit examinations expected to be completed within the next 12 months. |
Segment Information
Segment Information | 3 Months Ended |
Feb. 04, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Reportable Segments We have four reportable segments: wired infrastructure, wireless communications, enterprise storage and industrial & other. These segments align with our principal target markets. The segments represent components for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer of Broadcom, who has been identified as the Chief Operating Decision Maker, or the CODM, as defined by authoritative guidance on segment reporting, in determining how to allocate resources and evaluate performance. The segments are determined based on several factors, including client base, homogeneity of products, technology, delivery channels and similar economic characteristics. In the first quarter of fiscal year 2018, we completed the Brocade Merger. The operating results are reported primarily within the enterprise storage segment. See Note 2. “Acquisitions" for additional information. Our CODM assesses the performance of each segment and allocates resources to those segments based on net revenue and operating results and does not evaluate our segments using discrete asset information. Operating results by segment include items that are directly attributable to each segment. Operating results by segment also include shared expenses such as global operations, including manufacturing support, logistics and quality control, in addition to expenses associated with selling, general and administrative activities for the business, which are allocated primarily based on revenue, while facilities expenses are primarily allocated based on site-specific headcount. Unallocated Expenses Unallocated expenses include amortization of acquisition-related intangible assets, share-based compensation expense, restructuring, impairment and disposal charges, acquisition-related costs, charges related to inventory step-up to fair value, and other costs, which are not used in evaluating the results of, or in allocating resources to, our segments. Acquisition-related costs also include transaction costs and any costs directly related to the acquisition and integration of acquired businesses. Depreciation expense directly attributable to each reportable segment is included in operating results for each segment. However, the CODM does not evaluate depreciation expense by operating segment and, therefore, it is not separately presented. There was no inter-segment revenue. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Fiscal Quarter Ended February 4, January 29, (In millions) Net revenue: Wireless communications $ 2,210 $ 1,175 Wired infrastructure 1,875 2,084 Enterprise storage 991 707 Industrial & other 251 173 Total net revenue $ 5,327 $ 4,139 Operating income: Wireless communications $ 1,059 $ 427 Wired infrastructure 787 933 Enterprise storage 579 375 Industrial & other 142 61 Unallocated expenses (1,624 ) (1,290 ) Total operating income $ 943 $ 506 Significant Customer Information We sell our products through our direct sales force and a select network of distributors globally. One direct customer accounted for 19% and 17% of our net accounts receivable balance at February 4, 2018 and October 29, 2017 , respectively. During the fiscal quarter s ended February 4, 2018 and January 29, 2017 , one direct customer represented 18% and 15% of our net revenue, respectively. The majority of the revenue from this customer was included in our wireless communications and wired infrastructure segments. This customer is a contract manufacturer for a number of OEMs. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Feb. 04, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the fiscal quarters ended February 4, 2018 and January 29, 2017 , in the ordinary course of business, we purchased from, or sold to, entities of which one of our directors also serves or served as a director, or entities that are otherwise affiliated with one of our directors. Fiscal Quarter Ended February 4, January 29, (In millions) Total net revenue $ 182 $ 77 Total costs and expenses, including inventory purchases $ 36 $ 19 February 4, October 29, (In millions) Total receivables $ 109 $ 31 Total payables $ 16 $ 12 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Feb. 04, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The following table summarizes contractual obligations and commitments as of February 4, 2018 that materially changed from the end of fiscal year 2017: Fiscal Year Total 2018 2019 2020 2021 2022 Thereafter (In millions) Debt principal, interest and fees $ 21,373 $ 432 $ 566 $ 3,321 $ 1,242 $ 3,940 $ 11,872 Purchase commitments $ 996 $ 908 $ 69 $ 18 $ 1 $ — $ — Debt Principal, Interest and Fees. Represents principal and interest on borrowings under the 2017 Senior Notes, the Assumed Senior Notes, and the Brocade Convertible Notes. Purchase Commitments. Represents unconditional purchase obligations that include agreements to purchase goods or services, primarily inventory, that are enforceable and legally binding on us and that specify all significant terms, including fixed or minimum quantities to be purchased, fixed, minimum or variable price provisions, and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable without penalty. Cancellation for outstanding purchase orders for capital expenditures in connection with internal fabrication facility expansion and construction of our new campuses is generally allowed but requires payment of all costs incurred through the date of cancellation and, therefore, cancelable purchase orders for these capital expenditures are included in the table above. Due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits at February 4, 2018 , we are unable to reliably estimate the timing of cash settlement with the respective taxing authorities. Therefore, $4,212 million of unrecognized tax benefits and accrued interest classified within other long-term liabilities on our condensed consolidated balance sheet as of February 4, 2018 have been excluded from the contractual obligations table above. Contingencies From time to time, we are involved in litigation that we believe is of the type common to companies engaged in our line of business, including commercial disputes, employment issues and disputes involving claims by third parties that our activities infringe their patent, copyright, trademark or other intellectual property rights. Legal proceedings are often complex, may require the expenditure of significant funds and other resources, and the outcome of litigation is inherently uncertain, with material adverse outcomes possible. Intellectual property claims generally involve the demand by a third-party that we cease the manufacture, use or sale of the allegedly infringing products, processes or technologies and/or pay substantial damages or royalties for past, present and future use of the allegedly infringing intellectual property. Claims that our products or processes infringe or misappropriate any third-party intellectual property rights (including claims arising through our contractual indemnification of our customers) often involve highly complex, technical issues, the outcome of which is inherently uncertain. Moreover, from time to time we pursue litigation to assert our intellectual property rights. Regardless of the merit or resolution of any such litigation, complex intellectual property litigation is generally costly and diverts the efforts and attention of our management and technical personnel. Lawsuits Relating to the Acquisition of Brocade Communications Systems, Inc. On December 13, 2016, December 15, 2016, December 21, 2016, January 5, 2017 and January 18, 2017, six putative class action complaints were filed in the United States District Court for the Northern District of California, or the U.S. Northern District Court, captioned Steinberg v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7081-EMC, Gross v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7173-EJD, Jha v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7270-HRL, Bragan v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7271-JSD, Chuakay v. Brocade Communications Systems, Inc., et al., No. 3:17-cv-0058-PJH, and Mathew v. Brocade Communications Systems, Inc., et al., No. 3:16-cv-7271-HSG, respectively. The Steinberg, Bragan and Mathew complaints name as defendants Brocade, the members of Brocade’s board of directors, Broadcom, BRCM, and Bobcat Merger Sub, Inc. The Gross, Jha and Chuakay complaints name as defendants Brocade and the members of Brocade’s board of directors. All of the complaints assert claims under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 14a-9 promulgated thereunder. The complaints allege, among other things, that the board of directors of Brocade failed to provide material information and/or omitted material information from the Preliminary Proxy Statement filed with the SEC on December 6, 2016 by Brocade. The complaints seek to enjoin the closing of the transaction between Brocade and Broadcom, as well as certain other equitable and declaratory relief and attorneys’ fees and costs. On January 10, 2017, January 27, 2017 and February 15, 2017, the U.S. Northern District Court granted motions to relate the cases, all of which are now related to the Steinberg action and before the Honorable Judge Edward Chen. On January 11, 2017, Plaintiff Jha filed a motion for a preliminary injunction, which was subsequently withdrawn on January 18, 2017. On February 6, 2017, Plaintiff Gross voluntarily dismissed the Gross action without prejudice, which was ordered by the U.S. Northern District Court on February 15, 2017. On April 14, 2017, the U.S. Northern District Court granted the Motion for Consolidation, Appointment as Lead Plaintiff and Approval of Lead Plaintiff’s Selection of Counsel filed by Plaintiff Giulio D. Cessario, a plaintiff in the Steinberg action, which consolidated these actions under the caption In re Brocade Communications Systems, Inc. Securities Litigation, Case No. 3:16-cv-07081-EMC. On December 29, 2017, Lead Plaintiff voluntarily dismissed the consolidated action without prejudice and withdrew as Lead Plaintiff. On February 16, 2018, Plaintiffs Gross, Chuakay and Jha filed a joint motion for an award of attorneys’ fees. On March 2, 2018, defendants filed a joint opposition to the motion for attorneys’ fees. The hearing on Plaintiffs Gross, Chuakay and Jha’s motion is set for April 5, 2018. Lawsuits Relating to Tessera, Inc. On May 23, 2016, Tessera Technologies, Inc., Tessera, Inc., or Tessera, and Invensas Corp., an affiliate of Tessera, or Invensas or collectively, the Complainants, filed a complaint to institute an investigation with the U.S. International Trade Commission, or the ITC. The Complainants allege infringement by Broadcom and our subsidiaries, BRCM, Avago Technologies Limited, or Avago, and Avago Technologies U.S. Inc., or Avago U.S., or collectively, the Respondents, of three patents relating to semiconductor packaging and semiconductor manufacturing technology. The downstream respondents, which are customers of the Respondents, are Arista Networks, Inc., ARRIS International plc, ARRIS Group, Inc., ARRIS Technology, Inc., ARRIS Enterprises LLC, ARRIS Solutions, Inc., Pace Ltd., Pace Americas, LLC, Pace USA, LLC, ASUSteK Computer Inc., ASUS Computer International, Comcast Cable Communications, LLC, Comcast Cable Communications Management, LLC, Comcast Business Communications, LLC, HTC Corporation, HTC America, Inc., NETGEAR, Inc., Technicolor S.A., Technicolor USA, Inc., and Technicolor Connected Home USA LLC, or collectively, the Downstream Respondents. On July 20, 2016, the ITC instituted the investigation, or the ITC Investigation. Complainants sought the following relief: (1) a permanent limited exclusion order excluding from importation into the U.S. all of the Respondents' semiconductor devices and semiconductor device packages and Downstream Respondents’ products containing Respondents’ semiconductor devices and semiconductor device packages that infringe one or more of the three patents subject to the ITC Investigation and (2) a permanent cease and desist order prohibiting the Respondents and Downstream Respondents and related companies from importing, marketing, advertising, demonstrating, warehousing inventory for distribution, offering for sale, selling, qualifying for use in the products of others, distributing, or using the Respondents' semiconductor devices and semiconductor device packages and Downstream Respondents’ products containing Respondents’ semiconductor devices and semiconductor device packages that infringe one or more of the three patents subject to the ITC Investigation. On May 23, 2016, Tessera and Invensas filed a complaint against BRCM in the U.S. District Court for the District of Delaware, Case No. 1-16-cv-00379, alleging infringement of the three patents subject to the ITC Investigation. The complaint sought compensatory damages in an unspecified amount, as well as an award of reasonable attorneys’ fees, interest, and costs. On May 23, 2016, Tessera and Tessera Advanced Technologies, Inc. filed a complaint against BRCM in the U.S. District Court for the District of Delaware, Case No. 1-16-cv-00380, alleging infringement of four patents relating to semiconductor packaging and circuit technologies. On June 19, 2016, the complaint was amended to add three more patents relating to semiconductor packaging technologies for a total of seven patents in this matter. The complaint sought compensatory damages in an unspecified amount, as well as an award of reasonable attorneys’ fees, interest, and costs. On May 23, 2016, Invensas filed a Writ of Summons against Broadcom, BRCM, Broadcom Netherlands B.V. and Broadcom Communications Netherlands B.V. in the Hague District Court in the Netherlands, Case No. L1422381, alleging infringement of a single European patent that is a foreign counterpart to one of the patents subject to the ITC Investigation, or the European Patent. The named defendants also included distributors EBV Elektronik GmbH, Arrow Central Europe GmbH, and Mouser Electronics Netherlands B.V. The requested relief included a cease-and-desist order and damages in an unspecified amount. On May 23, 2016, Invensas also filed a complaint against each of (i) Broadcom Germany GmbH and Broadcom‘s German distributors, Case No. 7 O 97/16, and (ii) Broadcom and BRCM, Case No. 7 O 98/16, in the Mannheim District Court in Germany, alleging infringement of the European Patent. The requested relief included damages in an unspecified amount and an injunction preventing the sale of the accused products. On November 7, 2016, Invensas filed a complaint against Avago, Avago U.S., Emulex Corporation, or Emulex, LSI Corporation and PLX Technology, Inc., a subsidiary of Broadcom, or PLX, in the U.S. District Court for the District of Delaware, Case No. 1-16-cv-01033, alleging infringement of two of the patents subject to the ITC Investigation. The complaint sought compensatory damages in an unspecified amount, as well as an award of reasonable attorneys’ fees, interest, and costs. On November 7, 2016, Tessera and Invensas filed a complaint against Avago, Avago U.S., and Avago Technologies Wireless (U.S.A.) Manufacturing Inc. in the U.S. District Court for the District of Delaware, Case No. 1-16-cv-01034, alleging infringement of two patents relating to semiconductor packaging technology. On January 31, 2017, Tessera and Invensas amended the complaint in this matter and added three additional patents related to semiconductor packaging technology, which were also at issue in case No. 1-16-cv-00379 pending in Delaware. The complaint sought compensatory damages in an unspecified amount, as well as an award of reasonable attorneys’ fees, interest, and costs. On December 18, 2017, Broadcom and its subsidiaries entered into comprehensive settlement agreements and a patent license agreement with Tessera and its affiliates resolving all outstanding litigation. Pursuant to the agreements between the parties, the ITC investigation was terminated, and all of the other litigations were dismissed. Lawsuits Relating to the Acquisition of Emulex On March 3, 2015, two putative shareholder class action complaints were filed in the Court of Chancery of the State of Delaware, or the Delaware Court of Chancery, against Emulex, its directors, Avago Technologies Wireless (U.S.A.) Manufacturing Inc., or AT Wireless, and Emerald Merger Sub, Inc., or Emerald Merger Sub, captioned as follows: James Tullman v. Emulex Corporation, et al., Case No. 10743-VCL (Del. Ch.); Moshe Silver ACF/Yehudit Silver U/NY/UTMA v. Emulex Corporation, et al., Case No. 10744-VCL (Del. Ch.). On March 11, 2015, a third complaint was filed in the Delaware Court of Chancery, captioned Hoai Vu v. Emulex Corporation, et al., Case No. 10776-VCL (Del. Ch.). The complaints alleged, among other things, that Emulex’s directors breached their fiduciary duties by approving the Agreement and Plan of Merger, dated February 25, 2015, by and among AT Wireless, Emerald Merger Sub and Emulex and that AT Wireless and Emerald Merger Sub aided and abetted these alleged breaches of fiduciary duty. The complaints sought, among other things, either to enjoin the transaction or to rescind it following its completion, as well as damages, including attorneys’ and experts’ fees. The Delaware Court of Chancery has entered an order consolidating the three Delaware actions under the caption In re Emulex Corporation Stockholder Litigation, Consolidated C.A. No. 10743-VCL. On May 5, 2015, we completed our acquisition of Emulex. On June 5, 2015, the Court of Chancery dismissed the consolidated action without prejudice. On April 8, 2015, a putative class action complaint was filed in the U.S. Central District Court, entitled Gary Varjabedian, et al. v. Emulex Corporation, et al., No. 8:15-cv-554-CJC-JCG. The complaint names as defendants Emulex, its directors, AT Wireless and Emerald Merger Sub, and purported to assert claims under Sections 14(d), 14(e) and 20(a) of the Exchange Act. The complaint alleged, among other things, that the board of directors of Emulex failed to provide material information and/or omitted material information from the Solicitation/Recommendation Statement on Schedule 14D-9 filed with the SEC on April 7, 2015 by Emulex, together with the exhibits and annexes thereto. The complaint sought to enjoin the tender offer to purchase all of the outstanding shares of Emulex common stock, as well as certain other equitable relief and attorneys’ fees and costs. On July 28, 2015, the U.S. Central District Court issued an order appointing the lead plaintiff and approving lead counsel for the putative class. On September 9, 2015, plaintiff filed a first amended complaint seeking rescission of the merger, unspecified money damages, other equitable relief and attorneys’ fees and costs. On October 13, 2015, defendants moved to dismiss the first amended complaint, which the U.S. Central District Court granted with prejudice on January 13, 2016. Plaintiff filed a notice of appeal to the United States Court of Appeals for the Ninth Circuit, or the Ninth Circuit Court, on January 15, 2016. The appeal is captioned Gary Varjabedian, et al. v. Emulex Corporation, et al., No. 16-55088. On June 27, 2016, the Plaintiff-Appellant filed his opening brief, on August 17 and August 22, 2016, the Defendants-Appellees filed their answering briefs, and on October 5, 2016 Plaintiff-Appellant filed his reply brief. The Ninth Circuit Court heard oral argument on October 5, 2017. We are unable to predict the date on which the Ninth Circuit Court will issue any decision at this time. We believe these claims are all entirely without merit and intend to vigorously defend these actions. Lawsuits Relating to the Acquisition of PLX In June and July 2014, four lawsuits were filed in the Superior Court for the State of California, County of Santa Clara, or the Superior Court, challenging our acquisition of PLX. On July 22, 2014, the Superior Court consolidated these California actions under the caption In re PLX Technology, Inc. S’holder Litig., Lead Case No. 1-14-CV-267079 (Cal. Super. Ct., Santa Clara) and appointed lead counsel. That same day, the Superior Court also stayed the consolidated action, pending resolution of related actions filed in the Delaware Court of Chancery, described below. Also in June and July 2014, five similar lawsuits were filed in the Delaware Court of Chancery. On July 21, 2014, the Delaware Court of Chancery consolidated these Delaware actions under the caption In re PLX Technology, Inc. Stockholders Litigation, Consol. C.A. No. 9880-VCL (Del. Ch.), appointed lead plaintiffs and lead counsel, and designated an operative complaint for the consolidated action. On July 31, 2014, counsel for lead plaintiffs in Delaware informed the Delaware Court of Chancery that they would not seek a preliminary injunction, but intend to seek damages and pursue monetary remedies through post-closing litigation. Our acquisition of PLX closed on August 12, 2014. On October 31, 2014, lead plaintiffs filed a consolidated amended complaint. This complaint alleges, among other things, that PLX’s directors breached their fiduciary duties to PLX’s stockholders by seeking to sell PLX for an inadequate price, pursuant to an unfair process, and by agreeing to preclusive deal protections in the merger agreement. Plaintiffs also allege that Potomac Capital Partners II, L.P., Deutsche Bank Securities, AT Wireless and Pluto Merger Sub, Inc., the acquisition subsidiary, aided and abetted the alleged fiduciary breaches. Plaintiffs also allege that PLX’s Solicitation/Recommendation statement on Schedule 14D-9, as filed with the SEC, contained false and misleading statements and/or omitted material information necessary to inform the shareholder vote. The plaintiffs seek, among other things, monetary damages and attorneys’ fees and costs. On September 3, 2015, the Delaware Court of Chancery granted motions to dismiss filed by AT Wireless, the acquisition subsidiary and two PLX directors, and denied motions to dismiss filed by several other PLX directors, Potomac Capital Partners II, L.P. and Deutsche Bank Securities. On August 17, 2016, the five remaining PLX director-defendants and Deutsche Bank Securities entered into a stipulation of partial settlement to resolve claims against all of the former PLX directors and Deutsche Bank Securities asserted in the Delaware class action. The partial settlement also provides for a release of all potential claims against AT Wireless, Pluto Merger Sub, Inc., Avago and PLX. Defendant Potomac Capital Partners II, L.P. is not a party to the settlement. This partial settlement was approved by the Delaware Court of Chancery on December 20, 2016. The Delaware class litigation is on-going and is scheduled for trial on April 10, 2018. On November 9, 2016, the sole remaining defendant, Potomac Capital Partners II, L.P., filed cross-claims against the named individual director defendants and Deutsche Bank Securities for contribution. Under various contracts and statutes, PLX may owe indemnification to each of these parties. The cross-claims are now barred according to the terms of the approved partial settlement, although Potomac Capital Partners II, L.P. might be entitled to an offset (based on contributory fault) of any damages it might owe to the class. Other Matters In addition to the matters discussed above, we are currently engaged in a number of legal actions in the ordinary course of our business. Contingency Assessment We do not believe, based on currently available facts and circumstances, that the final outcome of any pending legal proceedings, taken individually or as a whole, will have a material adverse effect on our financial condition, results of operations or cash flows. However, lawsuits may involve complex questions of fact and law and may require the expenditure of significant funds and other resources to defend. The results of litigation are inherently uncertain, and material adverse outcomes are possible. From time to time, we may enter into confidential discussions regarding the potential settlement of such lawsuits. Any settlement of pending litigation could require us to incur substantial costs and other ongoing expenses, such as future royalty payments in the case of an intellectual property dispute. During the periods presented, no material amounts have been accrued or disclosed in the accompanying consolidated financial statements with respect to loss contingencies associated with any legal proceedings, as potential losses for such matters are not considered probable and ranges of losses are not reasonably estimable. These matters are subject to many uncertainties and the ultimate outcomes are not predictable. There can be no assurances that the actual amounts required to satisfy any liabilities arising from the matters described above will not have a material adverse effect on our results of operations, financial position or cash flows. Other Indemnifications As is customary in our industry and as provided for in local law in the United States and other jurisdictions, many of our standard contracts provide remedies to our customers and others with whom we enter into contracts, such as defense, settlement, or payment of judgment for intellectual property claims related to the use of our products. From time to time, we indemnify customers, as well as our suppliers, contractors, lessors, lessees, companies that purchase our businesses or assets and others with whom we enter into contracts, against combinations of loss, expense, or liability arising from various triggering events related to the sale and the use of our products, the use of their goods and services, the use of facilities and state of our owned facilities, the state of the assets and businesses that we sell and other matters covered by such contracts, usually up to a specified maximum amount. In addition, from time to time we also provide protection to these parties against claims related to undiscovered liabilities, additional product liabilities or environmental obligations. In our experience, claims made under such indemnifications are rare and the associated estimated fair value of the liability is not material. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Feb. 04, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring, Impairment and Disposal Charges Restructuring Charges The following is a summary of significant restructuring expense recognized in continuing operations, primarily operating expenses: • During the fiscal quarter ended February 4, 2018 , we began the implementation of cost reduction activities associated with the Brocade Merger and recorded a charge of $108 million in continuing operations, primarily related to employee termination costs. Approximately 950 employees have been terminated from our workforce across all business and functional areas on a global basis as a result of the Brocade Merger. • In connection with the acquisition of BRCM in the second quarter of fiscal year 2016, or the Broadcom Merger, we began the implementation of cost reduction activities associated with the Broadcom Merger. Restructuring costs recorded in continuing operations were $31 million and $42 million for the fiscal quarter s ended February 4, 2018 , and January 29, 2017 , respectively. Restructuring costs in continuing operations primarily related to lease and other exit costs for the fiscal quarter ended February 4, 2018 and employee termination costs for the fiscal quarter ended January 29, 2017 . Employee Termination Costs Leases and Other Exit Costs Total (In millions) Balance as of October 29, 2017 $ 28 $ 17 $ 45 Restructuring charges (a) 102 38 140 Utilization (72 ) (19 ) (91 ) Balance as of February 4, 2018 (b) $ 58 $ 36 $ 94 _________________________________ (a) Included $1 million of restructuring expense related to discontinued operations recognized during the fiscal quarter ended February 4, 2018 , which was included in loss from discontinued operations in our condensed consolidated statements of operations. (b) The majority of the employee termination costs balance is expected to be paid by the second quarter of fiscal year 2018 . The leases and other exit costs balance represents lease obligations that are expected to be paid over their remaining terms through fiscal year 2025 . Impairment and Disposal Charges During the fiscal quarter ended February 4, 2018 , we recorded impairment and disposal charges of $6 million primarily related to impairments of leasehold improvements. During the fiscal quarter ended January 29, 2017 , we recorded impairment and disposal charges of $10 million primarily related to impairment charges in our wired infrastructure segment for an IPR&D project that was abandoned as a result of the integration of BRCM. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Feb. 04, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information In connection with the Exchange Offer, Broadcom is required to provide certain financial information regarding the Subsidiary Issuers, the Parent Guarantor and our other subsidiaries, collectively, the Non-Guarantor Subsidiaries. The following information sets forth the condensed consolidating financial information as of February 4, 2018 and October 29, 2017 and for the fiscal quarters ended February 4, 2018 and January 29, 2017 for the Parent Guarantor, Subsidiary Issuers, and Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for under the equity method; accordingly, entries necessary to consolidate the Parent Guarantor, Subsidiary Issuers and Non-Guarantor Subsidiaries are reflected in the eliminations column. In the opinion of management, separate complete financial statements of the Subsidiary Issuers would not provide additional material information that would be useful in assessing their financial composition. For more information regarding the 2017 Senior Notes, see Note 6. “Borrowings”. Condensed Consolidating Balance Sheet February 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ 30 $ 4,508 $ 2,348 $ — $ 6,886 Trade accounts receivable, net — — 2,459 — 2,459 Inventory — — 1,291 — 1,291 Intercompany receivable 20 1,369 1,475 (2,864 ) — Intercompany loan receivable — 1,831 12,145 (13,976 ) — Other current assets 89 115 277 — 481 Total current assets 139 7,823 19,995 (16,840 ) 11,117 Long-term assets: Property, plant and equipment, net — 222 2,525 — 2,747 Goodwill — 1,360 25,539 — 26,899 Intangible assets, net — — 13,171 — 13,171 Investment in subsidiaries 29,038 43,814 57,460 (130,312 ) — Intercompany loan receivable, long-term — 41,485 915 (42,400 ) — Other long-term assets — 29 478 — 507 Total assets $ 29,177 $ 94,733 $ 120,083 $ (189,552 ) $ 54,441 LIABILITIES AND PARTNERS’ CAPITAL/SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 3 $ 49 $ 764 $ — $ 816 Employee compensation and benefits — 84 249 — 333 Current portion of long-term debt — 117 — — 117 Intercompany payable 175 1,325 1,364 (2,864 ) — Intercompany loan payable 21 12,124 1,831 (13,976 ) — Other current liabilities — 551 153 — 704 Total current liabilities 199 14,250 4,361 (16,840 ) 1,970 Long-term liabilities: Long-term debt — 17,437 38 — 17,475 Deferred tax liabilities — 782 461 — 1,243 Intercompany loan payable, long-term — 915 41,485 (42,400 ) — Unrecognized tax benefits — 3,480 732 — 4,212 Other long-term liabilities — 406 157 — 563 Total liabilities 199 37,270 47,234 (59,240 ) 25,463 Total partners’ capital/shareholders’ equity 28,978 57,463 72,849 (130,312 ) 28,978 Total liabilities and partners' capital/shareholders' equity $ 29,177 $ 94,733 $ 120,083 $ (189,552 ) $ 54,441 Condensed Consolidating Balance Sheet October 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ 7 $ 7,555 $ 3,455 $ — $ 11,017 Trade accounts receivable, net — — 2,448 — 2,448 Inventory — — 1,447 — 1,447 Intercompany receivable 33 279 309 (621 ) — Intercompany loan receivable 28 1,891 8,849 (10,768 ) — Other current assets 84 350 374 — 808 Total current assets 152 10,075 16,882 (11,389 ) 15,720 Long-term assets: Property, plant and equipment, net — 207 2,392 — 2,599 Goodwill — 1,360 23,346 — 24,706 Intangible assets, net — — 10,832 — 10,832 Investment in subsidiaries 23,112 28,049 43,450 (94,611 ) — Intercompany loan receivable, long-term — 41,547 — (41,547 ) — Other long-term assets — 213 245 — 458 Total assets $ 23,264 $ 81,451 $ 97,147 $ (147,547 ) $ 54,315 LIABILITIES AND PARTNERS’ CAPITAL/SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 7 $ 72 $ 1,026 $ — $ 1,105 Employee compensation and benefits — 274 352 — 626 Current portion of long-term debt — 117 — — 117 Intercompany payable 124 186 311 (621 ) — Intercompany loan payable 50 8,799 1,919 (10,768 ) — Other current liabilities — 254 427 — 681 Total current liabilities 181 9,702 4,035 (11,389 ) 2,529 Long-term liabilities: Long-term debt — 17,431 — — 17,431 Deferred tax liabilities — 10,293 (274 ) — 10,019 Intercompany loan payable, long-term — — 41,547 (41,547 ) — Unrecognized tax benefits — 497 514 — 1,011 Other long-term liabilities — 76 166 — 242 Total liabilities 181 37,999 45,988 (52,936 ) 31,232 Total partners’ capital/shareholders’ equity 23,083 43,452 51,159 (94,611 ) 23,083 Total liabilities and partners' capital/shareholders' equity $ 23,264 $ 81,451 $ 97,147 $ (147,547 ) $ 54,315 Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended February 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 5,327 $ — $ 5,327 Intercompany revenue — 584 — (584 ) — Total revenue — 584 5,327 (584 ) 5,327 Cost of products sold: Cost of products sold — 32 1,867 — 1,899 Intercompany cost of products sold — — 34 (34 ) — Purchase accounting effect on inventory — — 70 — 70 Amortization of acquisition-related intangible assets — — 715 — 715 Restructuring charges — 2 13 — 15 Total cost of products sold — 34 2,699 (34 ) 2,699 Gross margin — 550 2,628 (550 ) 2,628 Research and development — 406 519 — 925 Intercompany operating expense — — 550 (550 ) — Selling, general and administrative 34 85 172 — 291 Amortization of acquisition-related intangible assets — — 339 — 339 Restructuring, impairment and disposal charges — 33 97 — 130 Total operating expenses 34 524 1,677 (550 ) 1,685 Operating income (loss) (34 ) 26 951 — 943 Interest expense — (181 ) (2 ) — (183 ) Intercompany interest expense — (59 ) (574 ) 633 — Other income, net 1 19 15 — 35 Intercompany interest income — 574 59 (633 ) — Intercompany other income (expense), net 179 (57 ) (122 ) — — Income from continuing operations before income taxes and earnings in subsidiaries 146 322 327 — 795 Benefit from income taxes — (5,460 ) (326 ) — (5,786 ) Income from continuing operations before earnings in subsidiaries 146 5,782 653 — 6,581 Earnings in subsidiaries 6,420 5,823 11,605 (23,848 ) — Income from continuing operations and earnings in subsidiaries 6,566 11,605 12,258 (23,848 ) 6,581 Loss from discontinued operations, net of income taxes — — (15 ) — (15 ) Net income $ 6,566 $ 11,605 $ 12,243 $ (23,848 ) $ 6,566 Net income $ 6,566 $ 11,605 $ 12,243 $ (23,848 ) $ 6,566 Other comprehensive income, net of tax: Unrealized gain on available-for-sale investments — 9 — — 9 Other comprehensive income — 9 — — 9 Comprehensive income $ 6,566 $ 11,614 $ 12,243 $ (23,848 ) $ 6,575 Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended January 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ 73 $ 4,066 $ — $ 4,139 Intercompany revenue — 381 (3 ) (378 ) — Total revenue — 454 4,063 (378 ) 4,139 Cost of products sold: Cost of products sold — 45 1,528 — 1,573 Intercompany cost of products sold — (12 ) 59 (47 ) — Amortization of acquisition-related intangible assets — 7 552 — 559 Restructuring charges — 3 3 — 6 Total cost of products sold — 43 2,142 (47 ) 2,138 Gross margin — 411 1,921 (331 ) 2,001 Research and development — 367 441 — 808 Intercompany operating expense — (80 ) 411 (331 ) — Selling, general and administrative 7 94 100 — 201 Amortization of acquisition-related intangible assets — 7 433 — 440 Restructuring, impairment and disposal charges — 15 31 — 46 Total operating expenses 7 403 1,416 (331 ) 1,495 Operating income (loss) (7 ) 8 505 — 506 Interest expense — (51 ) (60 ) — (111 ) Intercompany interest expense (1 ) (74 ) (4 ) 79 — Loss on extinguishment of debt — (52 ) (107 ) — (159 ) Other income (expense), net — (2 ) 33 — 31 Intercompany interest income 1 4 74 (79 ) — Intercompany other income (expense), net 201 (66 ) (135 ) — — Income (loss) from continuing operations before income taxes 194 (233 ) 306 — 267 Provision for (benefit from) income taxes — 30 (20 ) — 10 Income (loss) from continuing operations, before earnings in subsidiaries 194 (263 ) 326 — 257 Earnings in (loss from) subsidiaries 58 (231 ) (503 ) 676 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 252 (494 ) (177 ) 676 257 Income (loss) from discontinued operations, net of income taxes — (10 ) 5 — (5 ) Net income (loss) $ 252 $ (504 ) $ (172 ) $ 676 $ 252 Comprehensive income (loss) $ 252 $ (504 ) $ (172 ) $ 676 $ 252 Condensed Consolidating Statements of Cash Flows Fiscal Quarter Ended February 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income $ 6,566 $ 11,605 $ 12,243 $ (23,848 ) $ 6,566 Adjustments to reconcile net income to net cash provided by operating activities (6,574 ) (11,948 ) (10,207 ) 23,848 (4,881 ) Net cash provided by (used in) operating activities (8 ) (343 ) 2,036 — 1,685 Cash flows from investing activities: Intercompany contributions paid — (9,099 ) (2,900 ) 11,999 — Distributions received from subsidiaries 755 — 755 (1,510 ) — Net change in intercompany loans 28 93 (4,213 ) 4,092 — Acquisitions of businesses, net of cash acquired — — (4,786 ) — (4,786 ) Proceeds from sales of businesses — — 782 — 782 Purchases of property, plant and equipment — (65 ) (155 ) — (220 ) Proceeds from disposals of property, plant and equipment — 2 235 — 237 Purchases of investments — (50 ) (194 ) — (244 ) Other — — 4 — 4 Net cash provided by (used in) investing activities 783 (9,119 ) (10,472 ) 14,581 (4,227 ) Cash flows from financing activities: Intercompany contributions received — 2,900 9,099 (11,999 ) — Distributions paid to unit holders (755 ) (755 ) (755 ) 1,510 (755 ) Net intercompany borrowings (28 ) 4,270 (150 ) (4,092 ) — Repayment of debt — — (856 ) — (856 ) Capital transactions with General Partner 31 — — — 31 Payment of capital lease obligations — — (6 ) — (6 ) Other — — (3 ) — (3 ) Net cash provided by (used in) financing activities (752 ) 6,415 7,329 (14,581 ) (1,589 ) Net change in cash and cash equivalents 23 (3,047 ) (1,107 ) — (4,131 ) Cash and cash equivalents at the beginning of period 7 7,555 3,455 — 11,017 Cash and cash equivalents at end of period $ 30 $ 4,508 $ 2,348 $ — $ 6,886 Condensed Consolidating Statements of Cash Flows Fiscal Quarter Ended January 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income (loss) $ 252 $ (504 ) $ (172 ) $ 676 $ 252 Adjustments to reconcile net income (loss) to net cash provided by operating activities (225 ) 279 1,723 (676 ) 1,101 Net cash provided by (used in) operating activities 27 (225 ) 1,551 — 1,353 Cash flows from investing activities: Net change in intercompany loans 410 171 7,693 (8,274 ) — Proceeds from sale of business — — 10 — 10 Purchases of property, plant and equipment — (162 ) (163 ) — (325 ) Other — — (4 ) — (4 ) Net cash provided by (used in) investing activities 410 9 7,536 (8,274 ) (319 ) Cash flows from financing activities: Distributions paid to unit holders (431 ) — — — (431 ) Net intercompany borrowings 30 (6,867 ) (1,437 ) 8,274 — Proceeds from issuance of long-term debt — 13,446 — — 13,446 Repayment of debt — (5,704 ) (7,964 ) — (13,668 ) Payment of debt issuance costs — (3 ) — — (3 ) Capital transactions with General Partner (29 ) — — — (29 ) Net cash provided by (used in) financing activities (430 ) 872 (9,401 ) 8,274 (685 ) Net change in cash and cash equivalents 7 656 (314 ) — 349 Cash and cash equivalents at the beginning of period — 1,092 1,952 — 3,044 Cash and cash equivalents at end of period $ 7 $ 1,748 $ 1,638 $ — $ 3,393 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Feb. 04, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event Cash Dividends/Distribution Declared On March 14, 2018 , Broadcom’s Board of Directors declared an interim cash dividend of $1.75 per Broadcom ordinary share, payable on March 29, 2018 to shareholders of record at the close of business (Eastern Time) on March 22, 2018 , or the Broadcom Dividend. As a result of the Broadcom Dividend, and pursuant to the Partnership Agreement, the Partnership will pay a cash distribution in an amount equal to the aggregate amount of the Broadcom Dividend to Broadcom, as General Partner, and a $1.75 distribution per LP Unit, payable on March 29, 2018 , to Limited Partners of record at the close of business (Eastern Time) on March 22, 2018 . |
Overview, Basis of Presentati22
Overview, Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 04, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fiscal periods | 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 November 4, 2018 , or fiscal year 2018 , is a 53-week fiscal year, with our first fiscal quarter containing 14 weeks. The first quarter of our fiscal year 2018 ended on February 4, 2018, the second quarter ends on May 6, 2018 and the third quarter ends on August 5, 2018. Our fiscal year ended October 29, 2017 , or fiscal year 2017 , was a 52-week fiscal year. |
Basis of presentation | On November 17, 2017, we acquired Brocade Communications Systems, Inc., or Brocade. The unaudited condensed consolidated financial statements include the results of operations of Brocade commencing as of the acquisition date. See Note 2. “Acquisitions” for additional information. The accompanying condensed consolidated financial statements of Broadcom and the Partnership include the accounts of Broadcom and the Partnership, respectively, and their subsidiaries, and have been prepared by us in accordance with generally accepted accounting principles in the United States, or GAAP, for interim financial information. The financial information included herein is unaudited, and reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the results for the periods presented. The October 29, 2017 condensed consolidated balance sheet data were derived from Broadcom’s audited consolidated financial statements included in Broadcom’s Annual Report on Form 10-K for fiscal year 2017 , or 2017 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, or SEC, but do not include all disclosures required by GAAP. All intercompany transactions and balances have been eliminated in consolidation. As a result of Broadcom’s controlling interest in the Partnership, we consolidate the financial results of the Partnership and present a noncontrolling interest for the portion of the Partnership we do not own in our condensed consolidated financial statements. Net income attributable to noncontrolling interest in the condensed consolidated statements of operations represents the portion of income attributable to the economic interest in the Partnership owned by the Limited Partners. The operating results for the fiscal quarter ended February 4, 2018 are not necessarily indicative of the results that may be expected for fiscal year 2018 , or for any other future period. |
Use of estimates | Use of estimates. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could affect the results of operations reported in future periods. |
Reclassifications | Reclassifications . Certain reclassifications have been made to the prior period condensed consolidated statement of cash flows. These reclassifications had no impact on the previously reported net cash activities. |
Recent accounting guidance | Recently Adopted Accounting Guidance In the first quarter of fiscal year 2018, we early adopted an accounting standards update issued by the Financial Accounting Standards Board, or FASB, in October 2016 related to the recognition of income tax consequences of an intra-entity transfer of an asset other than inventory. The standard requires a modified-retrospective transition method by means of a cumulative-effect adjustment as of the beginning of the period in which the guidance is adopted. The adoption of this guidance resulted in a decrease in current and long-term prepaid tax expense of $67 million and $199 million , respectively, an increase of $252 million to our accumulated deficit and a decrease of $14 million to our non-controlling interest. Recent Accounting Guidance Not Yet Adopted In August 2016, the FASB issued guidance related to the classification of certain transactions on the statement of cash flows. This guidance will be effective for the first quarter of our fiscal year 2019; however, early adoption is permitted. We will present our statements of cash flows in accordance with this guidance for the affected transactions occurring subsequent to adoption. In February 2016, the FASB issued guidance related to the accounting for leases, which among other things, requires a lessee to recognize lease assets and lease liabilities on the balance sheet for operating leases. This guidance will be effective for the first quarter of our fiscal year 2020. The new guidance is required to be applied using a modified retrospective approach. We are evaluating the impact this guidance will have on our condensed consolidated financial statements. In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The new standard creates a single source of revenue guidance under GAAP, eliminating industry-specific guidance. The underlying principle of the standard is to recognize revenue when a customer obtains control of promised goods or services at an amount that reflects the consideration that is expected to be received in exchange for those goods or services. An entity should apply a five-step approach for recognizing revenue as follows: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the entity satisfies a performance obligation. The standard also requires increased disclosures including the nature, amount, timing, and uncertainty of revenues and cash flows related to contracts with customers. The standard allows two methods of adoption: (i) retrospectively to each prior period presented (“full retrospective method”), or (ii) retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption ("modified retrospective method"). We plan to adopt the new standard using the modified retrospective method at the beginning of the first quarter of fiscal year 2019. We have established a cross-functional team to assess the potential impact of the new revenue standard and are on schedule in establishing new accounting policies, processes, and internal controls necessary to support the requirements of the new standard. While we are still finalizing our analysis to quantify the adoption impact of the provisions of the new standard, the exact impact of the new standard will be dependent on facts and circumstances at adoption and could vary from quarter to quarter. |
Earnings Per Share, Policy [Policy Text Block] | Basic net income per share is computed by dividing net income attributable to ordinary shares by the weighted-average number of Broadcom ordinary shares outstanding during the period. Diluted net income per share is computed by dividing net income attributable to ordinary shares and, if the LP Units are dilutive, net income attributable to noncontrolling interest by the weighted-average number of Broadcom ordinary shares and potentially dilutive shares outstanding during the period. Diluted shares outstanding include the dilutive effect of in-the-money share options, RSUs and employee share purchase plan rights under the Amended and Restated Broadcom Limited Employee Share Purchase Plan, or ESPP, (together referred to as equity awards). Diluted shares outstanding also included Broadcom ordinary shares issuable upon exchange of the LP Units (refer to Note 8. “Partners’ Capital” for additional information) for the fiscal quarter ended January 29, 2017 . The dilutive effect of equity awards is calculated based on the average share price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising share options and to purchase shares under the ESPP and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase ordinary shares. The dilutive effect of the LP Units was calculated using the if-converted method. The if-converted method assumes that the LP Units were converted at the beginning of the reporting period. Diluted net income per share for the fiscal quarter ended February 4, 2018 excluded the potentially dilutive effect of the exchange of LP Units for 22 million ordinary shares as their effect was antidilutive. |
Segment Reporting, Policy [Policy Text Block] | The segments represent components for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer of Broadcom, who has been identified as the Chief Operating Decision Maker, or the CODM, as defined by authoritative guidance on segment reporting, in determining how to allocate resources and evaluate performance. The segments are determined based on several factors, including client base, homogeneity of products, technology, delivery channels and similar economic characteristics. |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Intangible Assets by Major Class [Table Text Block] | Intangible Assets Gross Carrying Amount Accumulated Amortization Net Book Value (In millions) As of February 4, 2018: Purchased technology $ 15,554 $ (4,533 ) $ 11,021 Customer contracts and related relationships 1,792 (716 ) 1,076 Trade names 578 (130 ) 448 Other 146 (36 ) 110 Intangible assets subject to amortization 18,070 (5,415 ) 12,655 IPR&D 516 — 516 Total $ 18,586 $ (5,415 ) $ 13,171 As of October 29, 2017: Purchased technology $ 12,724 $ (4,265 ) $ 8,459 Customer contracts and related relationships 4,240 (3,100 ) 1,140 Trade names 528 (117 ) 411 Other 135 (25 ) 110 Intangible assets subject to amortization 17,627 (7,507 ) 10,120 IPR&D 712 — 712 Total $ 18,339 $ (7,507 ) $ 10,832 |
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The following table summarizes the details of IPR&D by category as of the Brocade Acquisition Date: Description IPR&D Percentage of Completion Estimated Cost to Complete Expected Release Date (By Fiscal Year) (Dollars in millions) Directors $ 64 72 % $ 45 2018 Switches $ 50 81 % $ 21 2018 Embedded $ 31 74 % $ 22 2018 Networking software $ 10 73 % $ 27 2018 |
Brocade Communications Systems, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Purchase Consideration (In millions) Cash paid for outstanding Brocade common stock $ 5,298 Cash paid by Broadcom to retire Brocade’s term loan 701 Cash paid for Brocade equity awards 31 Fair value of partially vested assumed equity awards 8 Total purchase consideration 6,038 Less: cash acquired 1,250 Total purchase consideration, net of cash acquired $ 4,788 |
Schedule of Assets Acquired and Liabilities Assumed [Table Text Block] | The following table presents our preliminary allocation of the total purchase price, net of cash acquired: Estimated Fair Value (In millions) Current assets $ 1,295 Goodwill 2,180 Intangible assets 3,396 Other long-term assets 83 Total assets acquired 6,954 Current portion of long-term debt (856 ) Other current liabilities (366 ) Long-term debt (38 ) Other long-term liabilities (906 ) Total liabilities assumed (2,166 ) Fair value of net assets acquired $ 4,788 |
Schedule of Intangible Assets by Major Class [Table Text Block] | Intangible Assets Fair Value Weighted-Average Amortization Periods (In millions) (In years) Developed technology $ 2,925 10 Customer contracts and related relationships 255 11 Trade name and other 61 6 Total identified finite-lived intangible assets 3,241 In-process research and development 155 N/A Total identified intangible assets $ 3,396 |
Schedule of Pro Forma Information | Fiscal Quarter Ended February 4, January 29, (In millions) Pro forma net revenue $ 5,447 $ 4,639 Pro forma net income attributable to ordinary shares $ 6,333 $ 134 |
Supplemental Financial Inform24
Supplemental Financial Information (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of inventory | February 4, October 29, (In millions) Finished goods $ 590 $ 562 Work-in-process 583 696 Raw materials 118 189 Total inventory $ 1,291 $ 1,447 |
Schedule of Accrued Rebate [Table Text Block] | Fiscal Quarter Ended February 4, January 29, (In millions) Beginning balance $ 124 $ 317 Charged as a reduction of revenue 39 64 Reversal of unclaimed rebates (4 ) (19 ) Payments (80 ) (126 ) Ending balance $ 79 $ 236 |
Other Noncurrent Liabilities [Table Text Block] | February 4, October 29, (In millions) Deferred tax liabilities (a) $ 1,243 $ 10,019 Unrecognized tax benefits (a) (b) 4,212 1,011 Other 563 242 Total other long-term liabilities $ 6,018 $ 11,272 ________________________________ (a) Refer to Note 9. “Income Taxes” for additional information regarding these balances. (b) Includes accrued interest and penalties. |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table summarizes the selected financial information of discontinued operations: Fiscal Quarter Ended February 4, January 29, (In millions) Net revenue $ 18 $ 2 Loss from discontinued operations $ (15 ) $ (5 ) |
Cash Flow, Supplemental Disclosures [Text Block] | Fiscal Quarter Ended February 4, January 29, (In millions) Cash paid for interest $ 232 $ 102 Cash paid for income taxes $ 109 $ 97 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Goodwill Wired Infrastructure Wireless Communications Enterprise Storage Industrial & Other Total (In millions) Balance as of October 29, 2017 $ 17,622 $ 5,945 $ 995 $ 144 $ 24,706 Brocade Merger 70 — 2,110 — 2,180 Other acquisition 13 — — — 13 Balance as of February 4, 2018 $ 17,705 $ 5,945 $ 3,105 $ 144 $ 26,899 |
Schedule of Finite- and Indefinite-lived Intangible Assets | Intangible Assets Gross Carrying Amount Accumulated Amortization Net Book Value (In millions) As of February 4, 2018: Purchased technology $ 15,554 $ (4,533 ) $ 11,021 Customer contracts and related relationships 1,792 (716 ) 1,076 Trade names 578 (130 ) 448 Other 146 (36 ) 110 Intangible assets subject to amortization 18,070 (5,415 ) 12,655 IPR&D 516 — 516 Total $ 18,586 $ (5,415 ) $ 13,171 As of October 29, 2017: Purchased technology $ 12,724 $ (4,265 ) $ 8,459 Customer contracts and related relationships 4,240 (3,100 ) 1,140 Trade names 528 (117 ) 411 Other 135 (25 ) 110 Intangible assets subject to amortization 17,627 (7,507 ) 10,120 IPR&D 712 — 712 Total $ 18,339 $ (7,507 ) $ 10,832 |
Finite-lived Intangible Assets Remaining | Based on the amount of intangible assets subject to amortization at February 4, 2018 , the expected amortization expense for each of the next five years and thereafter was as follows: Fiscal Year: Expected Amortization Expense (In millions) 2018 (remainder) $ 2,492 2019 2,846 2020 2,390 2021 1,893 2022 1,389 Thereafter 1,645 Total $ 12,655 |
Finite-lived Intangible Assets Remaining Weighted Average Amortization Period | The weighted-average amortization periods remaining by intangible asset category were as follows: Amortizable intangible assets: February 4, 2018 (In years) Purchased technology 6 Customer contracts and related relationships 6 Trade names 12 Other 10 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following is a reconciliation of the numerators and denominators of the basic and diluted net income per share computations for the periods presented: Fiscal Quarter Ended February 4, January 29, Numerator - Basic: (In millions, except per share data) Income from continuing operations $ 6,581 $ 257 Less: Income from continuing operations attributable to noncontrolling interest 337 13 Income from continuing operations attributable to ordinary shares 6,244 244 Loss from discontinued operations, net of income taxes (15 ) (5 ) Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest (1 ) — Loss from discontinued operations, net of income taxes, attributable to ordinary shares (14 ) (5 ) Net income attributable to ordinary shares $ 6,230 $ 239 Numerator - Diluted: Income from continuing operations $ 6,244 $ 257 Loss from discontinued operations, net of income taxes (14 ) (5 ) Net income $ 6,230 $ 252 Denominator: Weighted-average ordinary shares outstanding - basic 410 399 Dilutive effect of equity awards 16 17 Exchange of noncontrolling interest for ordinary shares — 23 Weighted-average ordinary shares outstanding - diluted 426 439 Basic income per share attributable to ordinary shares: Income per share from continuing operations $ 15.23 $ 0.61 Loss per share from discontinued operations (0.03 ) (0.01 ) Net income per share $ 15.20 $ 0.60 Diluted income per share attributable to ordinary shares: Income per share from continuing operations $ 14.66 $ 0.58 Loss per share from discontinued operations (0.04 ) (0.01 ) Net income per share $ 14.62 $ 0.57 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Future Principal Payments of Debt [Table Text Block] | The future scheduled principal payments for the outstanding 2017 Senior Notes, Assumed Senior Notes and Brocade Convertible Notes as of February 4, 2018 were as follows: Fiscal Year: Future Scheduled Principal Payments (In millions) 2018 (remainder) $ 117 2019 — 2020 2,788 2021 750 2022 3,509 Thereafter 10,563 Total $ 17,727 |
Schedule of Senior Notes [Table Text Block] | As of February 4, 2018: As of October 29, 2017: Effective Interest Rate Aggregate Principal Amount Effective Interest Rate Aggregate Principal Amount (In millions, except for percentages) 2017 Senior Notes Fixed rate 2.375% notes due January 2020 2.615 % $ 2,750 2.615 % $ 2,750 Fixed rate 2.200% notes due January 2021 2.406 % 750 2.406 % 750 Fixed rate 3.000% notes due January 2022 3.214 % 3,500 3.214 % 3,500 Fixed rate 2.650% notes due January 2023 2.781 % 1,000 2.781 % 1,000 Fixed rate 3.625% notes due January 2024 3.744 % 2,500 3.744 % 2,500 Fixed rate 3.125% notes due January 2025 3.234 % 1,000 3.234 % 1,000 Fixed rate 3.875% notes due January 2027 4.018 % 4,800 4.018 % 4,800 Fixed rate 3.500% notes due January 2028 3.596 % 1,250 3.596 % 1,250 17,550 17,550 Assumed Senior Notes Fixed rate 2.70% notes due November 2018 2.70 % 117 2.70 % 117 Fixed rate 2.50% - 4.50% notes due August 2022 - August 2034 2.50% - 4.50% 22 2.50% - 4.50% 22 139 139 Brocade Convertible Notes Fixed rate 1.375% convertible notes due January 2020 0.628 % 38 — Total principal amount outstanding 17,727 17,689 Less: Unaccreted discount and unamortized debt issuance costs (135 ) (141 ) Total carrying value of debt $ 17,592 $ 17,548 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Equity [Abstract] | |
Schedule of Dividends Paid to Ordinary Shareholders [Table Text Block] | Fiscal Quarter Ended February 4, January 29, (In millions, except per share data) Cash dividends paid per ordinary share $ 1.75 $ 1.02 Cash dividends paid to ordinary shareholders $ 717 $ 408 |
Summary of Share-based Compensation Expense | Fiscal Quarter Ended February 4, January 29, (In millions) Cost of products sold $ 20 $ 14 Research and development 203 141 Selling, general and administrative 76 46 Total share-based compensation expense (a) $ 299 $ 201 ________________________________ (a) Does not include $1 million of share-based compensation expense related to discontinued operations recognized during the fiscal quarter ended January 29, 2017 . |
Summary of RSU Activity | A summary of time- and market-based RSU activity is as follows: Number of RSUs Outstanding Weighted- Average Grant Date Fair Value Per Share (In millions, except per share data) Balance as of October 29, 2017 18 $ 163.42 Granted 1 $ 235.77 Vested — * $ 131.14 Forfeited — * $ 141.36 Balance as of February 4, 2018 19 $ 170.59 ________________________________ * Represents less than 0.5 million shares. |
Summary of Option Activity | A summary of time- and market-based share option activity is as follows: Number of Options Outstanding Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Life (In years) Aggregate Intrinsic Value (In millions, except years and per share data) Balance as of October 29, 2017 10 $ 49.54 Exercised — * $ 44.75 $ 163 Cancelled — * $ 78.66 Balance as of February 4, 2018 10 $ 49.88 2.62 $ 1,786 Fully vested as of February 4, 2018 9 $ 47.79 2.56 $ 1,651 Fully vested and expected to vest as of February 4, 2018 10 $ 49.88 2.62 $ 1,786 ________________________________ * Represents less than 0.5 million shares. |
Partners' Capital Partners' Cap
Partners' Capital Partners' Capital (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Statement of Partners' Capital [Abstract] | |
Schedule of Capital Transactions with General Partner [Table Text Block] | Fiscal Quarter Ended February 4, January 29, (In millions) Capital transactions made by General Partner to Partnership $ 42 $ 61 |
Schedule of Partnership Distribution [Table Text Block] | Fiscal Quarter Ended February 4, January 29, (In millions, except per LP Unit) Cash distributions paid to General Partner $ 717 $ 408 Cash distributions paid per LP Unit $ 1.75 $ 1.02 Cash distributions paid to Limited Partners $ 38 $ 23 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Fiscal Quarter Ended February 4, January 29, (In millions) Net revenue: Wireless communications $ 2,210 $ 1,175 Wired infrastructure 1,875 2,084 Enterprise storage 991 707 Industrial & other 251 173 Total net revenue $ 5,327 $ 4,139 Operating income: Wireless communications $ 1,059 $ 427 Wired infrastructure 787 933 Enterprise storage 579 375 Industrial & other 142 61 Unallocated expenses (1,624 ) (1,290 ) Total operating income $ 943 $ 506 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Related Party Transactions [Abstract] | |
Transactions and Balances with Related Parties | Fiscal Quarter Ended February 4, January 29, (In millions) Total net revenue $ 182 $ 77 Total costs and expenses, including inventory purchases $ 36 $ 19 February 4, October 29, (In millions) Total receivables $ 109 $ 31 Total payables $ 16 $ 12 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Obligations and Commitments | The following table summarizes contractual obligations and commitments as of February 4, 2018 that materially changed from the end of fiscal year 2017: Fiscal Year Total 2018 2019 2020 2021 2022 Thereafter (In millions) Debt principal, interest and fees $ 21,373 $ 432 $ 566 $ 3,321 $ 1,242 $ 3,940 $ 11,872 Purchase commitments $ 996 $ 908 $ 69 $ 18 $ 1 $ — $ — |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | Employee Termination Costs Leases and Other Exit Costs Total (In millions) Balance as of October 29, 2017 $ 28 $ 17 $ 45 Restructuring charges (a) 102 38 140 Utilization (72 ) (19 ) (91 ) Balance as of February 4, 2018 (b) $ 58 $ 36 $ 94 _________________________________ (a) Included $1 million of restructuring expense related to discontinued operations recognized during the fiscal quarter ended February 4, 2018 , which was included in loss from discontinued operations in our condensed consolidated statements of operations. (b) The majority of the employee termination costs balance is expected to be paid by the second quarter of fiscal year 2018 . The leases and other exit costs balance represents lease obligations that are expected to be paid over their remaining terms through fiscal year 2025 . |
Condensed Consolidating Finan34
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Feb. 04, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet February 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ 30 $ 4,508 $ 2,348 $ — $ 6,886 Trade accounts receivable, net — — 2,459 — 2,459 Inventory — — 1,291 — 1,291 Intercompany receivable 20 1,369 1,475 (2,864 ) — Intercompany loan receivable — 1,831 12,145 (13,976 ) — Other current assets 89 115 277 — 481 Total current assets 139 7,823 19,995 (16,840 ) 11,117 Long-term assets: Property, plant and equipment, net — 222 2,525 — 2,747 Goodwill — 1,360 25,539 — 26,899 Intangible assets, net — — 13,171 — 13,171 Investment in subsidiaries 29,038 43,814 57,460 (130,312 ) — Intercompany loan receivable, long-term — 41,485 915 (42,400 ) — Other long-term assets — 29 478 — 507 Total assets $ 29,177 $ 94,733 $ 120,083 $ (189,552 ) $ 54,441 LIABILITIES AND PARTNERS’ CAPITAL/SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 3 $ 49 $ 764 $ — $ 816 Employee compensation and benefits — 84 249 — 333 Current portion of long-term debt — 117 — — 117 Intercompany payable 175 1,325 1,364 (2,864 ) — Intercompany loan payable 21 12,124 1,831 (13,976 ) — Other current liabilities — 551 153 — 704 Total current liabilities 199 14,250 4,361 (16,840 ) 1,970 Long-term liabilities: Long-term debt — 17,437 38 — 17,475 Deferred tax liabilities — 782 461 — 1,243 Intercompany loan payable, long-term — 915 41,485 (42,400 ) — Unrecognized tax benefits — 3,480 732 — 4,212 Other long-term liabilities — 406 157 — 563 Total liabilities 199 37,270 47,234 (59,240 ) 25,463 Total partners’ capital/shareholders’ equity 28,978 57,463 72,849 (130,312 ) 28,978 Total liabilities and partners' capital/shareholders' equity $ 29,177 $ 94,733 $ 120,083 $ (189,552 ) $ 54,441 Condensed Consolidating Balance Sheet October 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ 7 $ 7,555 $ 3,455 $ — $ 11,017 Trade accounts receivable, net — — 2,448 — 2,448 Inventory — — 1,447 — 1,447 Intercompany receivable 33 279 309 (621 ) — Intercompany loan receivable 28 1,891 8,849 (10,768 ) — Other current assets 84 350 374 — 808 Total current assets 152 10,075 16,882 (11,389 ) 15,720 Long-term assets: Property, plant and equipment, net — 207 2,392 — 2,599 Goodwill — 1,360 23,346 — 24,706 Intangible assets, net — — 10,832 — 10,832 Investment in subsidiaries 23,112 28,049 43,450 (94,611 ) — Intercompany loan receivable, long-term — 41,547 — (41,547 ) — Other long-term assets — 213 245 — 458 Total assets $ 23,264 $ 81,451 $ 97,147 $ (147,547 ) $ 54,315 LIABILITIES AND PARTNERS’ CAPITAL/SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 7 $ 72 $ 1,026 $ — $ 1,105 Employee compensation and benefits — 274 352 — 626 Current portion of long-term debt — 117 — — 117 Intercompany payable 124 186 311 (621 ) — Intercompany loan payable 50 8,799 1,919 (10,768 ) — Other current liabilities — 254 427 — 681 Total current liabilities 181 9,702 4,035 (11,389 ) 2,529 Long-term liabilities: Long-term debt — 17,431 — — 17,431 Deferred tax liabilities — 10,293 (274 ) — 10,019 Intercompany loan payable, long-term — — 41,547 (41,547 ) — Unrecognized tax benefits — 497 514 — 1,011 Other long-term liabilities — 76 166 — 242 Total liabilities 181 37,999 45,988 (52,936 ) 31,232 Total partners’ capital/shareholders’ equity 23,083 43,452 51,159 (94,611 ) 23,083 Total liabilities and partners' capital/shareholders' equity $ 23,264 $ 81,451 $ 97,147 $ (147,547 ) $ 54,315 |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended February 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 5,327 $ — $ 5,327 Intercompany revenue — 584 — (584 ) — Total revenue — 584 5,327 (584 ) 5,327 Cost of products sold: Cost of products sold — 32 1,867 — 1,899 Intercompany cost of products sold — — 34 (34 ) — Purchase accounting effect on inventory — — 70 — 70 Amortization of acquisition-related intangible assets — — 715 — 715 Restructuring charges — 2 13 — 15 Total cost of products sold — 34 2,699 (34 ) 2,699 Gross margin — 550 2,628 (550 ) 2,628 Research and development — 406 519 — 925 Intercompany operating expense — — 550 (550 ) — Selling, general and administrative 34 85 172 — 291 Amortization of acquisition-related intangible assets — — 339 — 339 Restructuring, impairment and disposal charges — 33 97 — 130 Total operating expenses 34 524 1,677 (550 ) 1,685 Operating income (loss) (34 ) 26 951 — 943 Interest expense — (181 ) (2 ) — (183 ) Intercompany interest expense — (59 ) (574 ) 633 — Other income, net 1 19 15 — 35 Intercompany interest income — 574 59 (633 ) — Intercompany other income (expense), net 179 (57 ) (122 ) — — Income from continuing operations before income taxes and earnings in subsidiaries 146 322 327 — 795 Benefit from income taxes — (5,460 ) (326 ) — (5,786 ) Income from continuing operations before earnings in subsidiaries 146 5,782 653 — 6,581 Earnings in subsidiaries 6,420 5,823 11,605 (23,848 ) — Income from continuing operations and earnings in subsidiaries 6,566 11,605 12,258 (23,848 ) 6,581 Loss from discontinued operations, net of income taxes — — (15 ) — (15 ) Net income $ 6,566 $ 11,605 $ 12,243 $ (23,848 ) $ 6,566 Net income $ 6,566 $ 11,605 $ 12,243 $ (23,848 ) $ 6,566 Other comprehensive income, net of tax: Unrealized gain on available-for-sale investments — 9 — — 9 Other comprehensive income — 9 — — 9 Comprehensive income $ 6,566 $ 11,614 $ 12,243 $ (23,848 ) $ 6,575 Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended January 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ 73 $ 4,066 $ — $ 4,139 Intercompany revenue — 381 (3 ) (378 ) — Total revenue — 454 4,063 (378 ) 4,139 Cost of products sold: Cost of products sold — 45 1,528 — 1,573 Intercompany cost of products sold — (12 ) 59 (47 ) — Amortization of acquisition-related intangible assets — 7 552 — 559 Restructuring charges — 3 3 — 6 Total cost of products sold — 43 2,142 (47 ) 2,138 Gross margin — 411 1,921 (331 ) 2,001 Research and development — 367 441 — 808 Intercompany operating expense — (80 ) 411 (331 ) — Selling, general and administrative 7 94 100 — 201 Amortization of acquisition-related intangible assets — 7 433 — 440 Restructuring, impairment and disposal charges — 15 31 — 46 Total operating expenses 7 403 1,416 (331 ) 1,495 Operating income (loss) (7 ) 8 505 — 506 Interest expense — (51 ) (60 ) — (111 ) Intercompany interest expense (1 ) (74 ) (4 ) 79 — Loss on extinguishment of debt — (52 ) (107 ) — (159 ) Other income (expense), net — (2 ) 33 — 31 Intercompany interest income 1 4 74 (79 ) — Intercompany other income (expense), net 201 (66 ) (135 ) — — Income (loss) from continuing operations before income taxes 194 (233 ) 306 — 267 Provision for (benefit from) income taxes — 30 (20 ) — 10 Income (loss) from continuing operations, before earnings in subsidiaries 194 (263 ) 326 — 257 Earnings in (loss from) subsidiaries 58 (231 ) (503 ) 676 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 252 (494 ) (177 ) 676 257 Income (loss) from discontinued operations, net of income taxes — (10 ) 5 — (5 ) Net income (loss) $ 252 $ (504 ) $ (172 ) $ 676 $ 252 Comprehensive income (loss) $ 252 $ (504 ) $ (172 ) $ 676 $ 252 |
Condensed Consolidating Statements of Comprehensive Income (Loss) | Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended February 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 5,327 $ — $ 5,327 Intercompany revenue — 584 — (584 ) — Total revenue — 584 5,327 (584 ) 5,327 Cost of products sold: Cost of products sold — 32 1,867 — 1,899 Intercompany cost of products sold — — 34 (34 ) — Purchase accounting effect on inventory — — 70 — 70 Amortization of acquisition-related intangible assets — — 715 — 715 Restructuring charges — 2 13 — 15 Total cost of products sold — 34 2,699 (34 ) 2,699 Gross margin — 550 2,628 (550 ) 2,628 Research and development — 406 519 — 925 Intercompany operating expense — — 550 (550 ) — Selling, general and administrative 34 85 172 — 291 Amortization of acquisition-related intangible assets — — 339 — 339 Restructuring, impairment and disposal charges — 33 97 — 130 Total operating expenses 34 524 1,677 (550 ) 1,685 Operating income (loss) (34 ) 26 951 — 943 Interest expense — (181 ) (2 ) — (183 ) Intercompany interest expense — (59 ) (574 ) 633 — Other income, net 1 19 15 — 35 Intercompany interest income — 574 59 (633 ) — Intercompany other income (expense), net 179 (57 ) (122 ) — — Income from continuing operations before income taxes and earnings in subsidiaries 146 322 327 — 795 Benefit from income taxes — (5,460 ) (326 ) — (5,786 ) Income from continuing operations before earnings in subsidiaries 146 5,782 653 — 6,581 Earnings in subsidiaries 6,420 5,823 11,605 (23,848 ) — Income from continuing operations and earnings in subsidiaries 6,566 11,605 12,258 (23,848 ) 6,581 Loss from discontinued operations, net of income taxes — — (15 ) — (15 ) Net income $ 6,566 $ 11,605 $ 12,243 $ (23,848 ) $ 6,566 Net income $ 6,566 $ 11,605 $ 12,243 $ (23,848 ) $ 6,566 Other comprehensive income, net of tax: Unrealized gain on available-for-sale investments — 9 — — 9 Other comprehensive income — 9 — — 9 Comprehensive income $ 6,566 $ 11,614 $ 12,243 $ (23,848 ) $ 6,575 Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended January 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ 73 $ 4,066 $ — $ 4,139 Intercompany revenue — 381 (3 ) (378 ) — Total revenue — 454 4,063 (378 ) 4,139 Cost of products sold: Cost of products sold — 45 1,528 — 1,573 Intercompany cost of products sold — (12 ) 59 (47 ) — Amortization of acquisition-related intangible assets — 7 552 — 559 Restructuring charges — 3 3 — 6 Total cost of products sold — 43 2,142 (47 ) 2,138 Gross margin — 411 1,921 (331 ) 2,001 Research and development — 367 441 — 808 Intercompany operating expense — (80 ) 411 (331 ) — Selling, general and administrative 7 94 100 — 201 Amortization of acquisition-related intangible assets — 7 433 — 440 Restructuring, impairment and disposal charges — 15 31 — 46 Total operating expenses 7 403 1,416 (331 ) 1,495 Operating income (loss) (7 ) 8 505 — 506 Interest expense — (51 ) (60 ) — (111 ) Intercompany interest expense (1 ) (74 ) (4 ) 79 — Loss on extinguishment of debt — (52 ) (107 ) — (159 ) Other income (expense), net — (2 ) 33 — 31 Intercompany interest income 1 4 74 (79 ) — Intercompany other income (expense), net 201 (66 ) (135 ) — — Income (loss) from continuing operations before income taxes 194 (233 ) 306 — 267 Provision for (benefit from) income taxes — 30 (20 ) — 10 Income (loss) from continuing operations, before earnings in subsidiaries 194 (263 ) 326 — 257 Earnings in (loss from) subsidiaries 58 (231 ) (503 ) 676 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 252 (494 ) (177 ) 676 257 Income (loss) from discontinued operations, net of income taxes — (10 ) 5 — (5 ) Net income (loss) $ 252 $ (504 ) $ (172 ) $ 676 $ 252 Comprehensive income (loss) $ 252 $ (504 ) $ (172 ) $ 676 $ 252 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Fiscal Quarter Ended February 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income $ 6,566 $ 11,605 $ 12,243 $ (23,848 ) $ 6,566 Adjustments to reconcile net income to net cash provided by operating activities (6,574 ) (11,948 ) (10,207 ) 23,848 (4,881 ) Net cash provided by (used in) operating activities (8 ) (343 ) 2,036 — 1,685 Cash flows from investing activities: Intercompany contributions paid — (9,099 ) (2,900 ) 11,999 — Distributions received from subsidiaries 755 — 755 (1,510 ) — Net change in intercompany loans 28 93 (4,213 ) 4,092 — Acquisitions of businesses, net of cash acquired — — (4,786 ) — (4,786 ) Proceeds from sales of businesses — — 782 — 782 Purchases of property, plant and equipment — (65 ) (155 ) — (220 ) Proceeds from disposals of property, plant and equipment — 2 235 — 237 Purchases of investments — (50 ) (194 ) — (244 ) Other — — 4 — 4 Net cash provided by (used in) investing activities 783 (9,119 ) (10,472 ) 14,581 (4,227 ) Cash flows from financing activities: Intercompany contributions received — 2,900 9,099 (11,999 ) — Distributions paid to unit holders (755 ) (755 ) (755 ) 1,510 (755 ) Net intercompany borrowings (28 ) 4,270 (150 ) (4,092 ) — Repayment of debt — — (856 ) — (856 ) Capital transactions with General Partner 31 — — — 31 Payment of capital lease obligations — — (6 ) — (6 ) Other — — (3 ) — (3 ) Net cash provided by (used in) financing activities (752 ) 6,415 7,329 (14,581 ) (1,589 ) Net change in cash and cash equivalents 23 (3,047 ) (1,107 ) — (4,131 ) Cash and cash equivalents at the beginning of period 7 7,555 3,455 — 11,017 Cash and cash equivalents at end of period $ 30 $ 4,508 $ 2,348 $ — $ 6,886 Condensed Consolidating Statements of Cash Flows Fiscal Quarter Ended January 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income (loss) $ 252 $ (504 ) $ (172 ) $ 676 $ 252 Adjustments to reconcile net income (loss) to net cash provided by operating activities (225 ) 279 1,723 (676 ) 1,101 Net cash provided by (used in) operating activities 27 (225 ) 1,551 — 1,353 Cash flows from investing activities: Net change in intercompany loans 410 171 7,693 (8,274 ) — Proceeds from sale of business — — 10 — 10 Purchases of property, plant and equipment — (162 ) (163 ) — (325 ) Other — — (4 ) — (4 ) Net cash provided by (used in) investing activities 410 9 7,536 (8,274 ) (319 ) Cash flows from financing activities: Distributions paid to unit holders (431 ) — — — (431 ) Net intercompany borrowings 30 (6,867 ) (1,437 ) 8,274 — Proceeds from issuance of long-term debt — 13,446 — — 13,446 Repayment of debt — (5,704 ) (7,964 ) — (13,668 ) Payment of debt issuance costs — (3 ) — — (3 ) Capital transactions with General Partner (29 ) — — — (29 ) Net cash provided by (used in) financing activities (430 ) 872 (9,401 ) 8,274 (685 ) Net change in cash and cash equivalents 7 656 (314 ) — 349 Cash and cash equivalents at the beginning of period — 1,092 1,952 — 3,044 Cash and cash equivalents at end of period $ 7 $ 1,748 $ 1,638 $ — $ 3,393 |
Overview, Basis of Presentati35
Overview, Basis of Presentation and Significant Accounting Policies (Textuals) (Details) $ in Millions | 3 Months Ended |
Feb. 04, 2018USD ($)Registrantsegment | |
Number of reportable segments | segment | 4 |
Number of registrants | Registrant | 2 |
Fiscal period end | 52- or 53-week |
Broadcom-Delaware [Member] | |
Share Exchange Ratio | 1 |
Prepaid Expenses and Other Current Assets [Member] | |
Cumulative effect of new accounting pronouncement | $ (67) |
Other Noncurrent Assets [Member] | |
Cumulative effect of new accounting pronouncement | (199) |
Retained Earnings [Member] | |
Cumulative effect of new accounting pronouncement | 252 |
Noncontrolling Interest [Member] | |
Cumulative effect of new accounting pronouncement | $ 14 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | Nov. 17, 2017 | Feb. 04, 2018 | Jan. 29, 2017 | Dec. 01, 2017 | Oct. 29, 2017 |
Business Acquisition [Line Items] | |||||
Proceeds from sales of businesses | $ 782 | $ 10 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 4,786 | 0 | |||
Proceeds from Sale of Property, Plant, and Equipment | 237 | 0 | |||
Goodwill | 26,899 | $ 24,706 | |||
Revenue, Net | 5,327 | $ 4,139 | |||
Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 1,295 | ||||
Finite-lived Intangible Assets Acquired | 3,241 | ||||
Payments to Acquire Businesses, Gross | 5,298 | ||||
Other Payments to Acquire Businesses | 701 | ||||
Payments To Acquire Businesses, Gross, Equity Awards | 31 | ||||
Business Combination, Acquisition Related Costs | 21 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 8 | ||||
Business Combination, Consideration Transferred | 6,038 | ||||
Cash Acquired from Acquisition | 1,250 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 4,788 | ||||
Proceeds from Sale of Property, Plant, and Equipment | 224 | ||||
Goodwill | 2,180 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 3,396 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 83 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 6,954 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | (856) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (366) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | (38) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (906) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (2,166) | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 4,788 | ||||
Revenue, Net | $ 328 | ||||
Ruckus Wireless and ICX Switch [Member] | |||||
Business Acquisition [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 800 | ||||
Developed Technology Rights [Member] | Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived Intangible Assets Acquired | $ 2,925 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Customer Contracts [Member] | Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived Intangible Assets Acquired | $ 255 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | ||||
Trade name and other [Member] | Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived Intangible Assets Acquired | $ 61 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | ||||
IPR&D | Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value Inputs, Discount Rate | 11.00% | ||||
Indefinite-lived Intangible Assets Acquired | $ 155 | ||||
Risk premium over discount rate | 1.00% | ||||
Switches [Member] | IPR&D | Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Indefinite-lived Intangible Assets Acquired | $ 50 | ||||
Percentage of completion | 81.00% | ||||
Estimated costs to complete | $ 21 | ||||
Year of completion | 2,018 | ||||
Embedded [Member] | IPR&D | Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Indefinite-lived Intangible Assets Acquired | $ 31 | ||||
Percentage of completion | 74.00% | ||||
Estimated costs to complete | $ 22 | ||||
Year of completion | 2,018 | ||||
Networking software [Member] | IPR&D | Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Indefinite-lived Intangible Assets Acquired | $ 10 | ||||
Percentage of completion | 73.00% | ||||
Estimated costs to complete | $ 27 | ||||
Year of completion | 2,018 | ||||
Directors [Member] [Member] | IPR&D | Brocade Communications Systems, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Indefinite-lived Intangible Assets Acquired | $ 64 | ||||
Percentage of completion | 72.00% | ||||
Estimated costs to complete | $ 45 | ||||
Year of completion | 2,018 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | |
Business Acquisition [Line Items] | ||
Purchase accounting effect on inventory | $ 70 | $ 0 |
Brocade Communications Systems, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Purchase accounting effect on inventory | 70 | |
Pro forma net revenue | 5,447 | 4,639 |
Pro forma net loss attributable to ordinary shares | 6,333 | $ 134 |
Acquisition Costs, Period Cost | $ 69 |
Supplemental Financial Inform38
Supplemental Financial Information (Cash and Investments) (Details) - Fair Value, Inputs, Level 1 [Member] - Cash and Cash Equivalents [Member] - USD ($) $ in Millions | Feb. 04, 2018 | Oct. 29, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time Deposits, at Carrying Value | $ 3,782 | $ 6,002 |
Money Market Funds, at Carrying Value | $ 200 | $ 401 |
Supplemental Financial Inform39
Supplemental Financial Information (Inventory) (Details) - USD ($) $ in Millions | Feb. 04, 2018 | Oct. 29, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 590 | $ 562 |
Work-in-process | 583 | 696 |
Raw materials | 118 | 189 |
Total inventory | $ 1,291 | $ 1,447 |
Supplemental Financial Inform40
Supplemental Financial Information (Accrued rebates) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | |
AccruedRebateActivityRollForward [Abstract] | ||
Beginning balance | $ 124 | $ 317 |
Charged as a reduction of revenue | 39 | 64 |
Reversal of unclaimed rebates | (4) | (19) |
Payments | (80) | (126) |
Ending balance | $ 79 | $ 236 |
Supplemental Financial Inform41
Supplemental Financial Information (Other LT Liabilities) (Details) - USD ($) $ in Millions | Feb. 04, 2018 | Oct. 29, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |||
Deferred Tax Liabilities, Net, Noncurrent | [1] | $ 1,243 | $ 10,019 |
Unrecognized tax benefits including interest and penalties | [1],[2] | 4,212 | 1,011 |
Other Long Term Liabilities | 563 | 242 | |
Total other long-term liabilities | $ 6,018 | $ 11,272 | |
[1] | (a) Refer to Note 9. “Income Taxes” for additional information regarding these balances. | ||
[2] | (b) Includes accrued interest and penalties. |
Supplemental Financial Inform42
Supplemental Financial Information Supplement Financial Information (Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 04, 2018 | Jan. 29, 2017 | Dec. 01, 2017 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Net revenue from discontinued operations | $ 18 | $ 2 | |
Loss from discontinued operation, before income tax | (15) | $ (5) | |
Ruckus Wireless and ICX Switch [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | $ 800 | ||
Discontinued Operation, Amounts of Material Contingent Liabilities Remaining | $ 116 |
Supplemental Financial Inform43
Supplemental Financial Information (Supplemental Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | Oct. 29, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Cash paid for interest | $ 232 | $ 102 | |
Cash paid for income taxes | 109 | $ 97 | |
Capital expenditures incurred but not yet paid | $ 112 | $ 122 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets (Goodwill Rollforward) (Details) $ in Millions | 3 Months Ended |
Feb. 04, 2018USD ($)business | |
Goodwill [Line Items] | |
Number of Businesses Acquired | business | 1 |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | $ 24,706 |
Balance as of February 4, 2018 | 26,899 |
Wired Infrastructure | |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | 17,622 |
Balance as of February 4, 2018 | 17,705 |
Wireless Communications | |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | 5,945 |
Balance as of February 4, 2018 | 5,945 |
Enterprise Storage | |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | 995 |
Balance as of February 4, 2018 | 3,105 |
Industrial & Other | |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | 144 |
Balance as of February 4, 2018 | 144 |
BrocadeMerger [Member] | |
Goodwill [Roll Forward] | |
Other acquisition | 2,180 |
BrocadeMerger [Member] | Wired Infrastructure | |
Goodwill [Roll Forward] | |
Other acquisition | 70 |
BrocadeMerger [Member] | Wireless Communications | |
Goodwill [Roll Forward] | |
Other acquisition | 0 |
BrocadeMerger [Member] | Enterprise Storage | |
Goodwill [Roll Forward] | |
Other acquisition | 2,110 |
BrocadeMerger [Member] | Industrial & Other | |
Goodwill [Roll Forward] | |
Other acquisition | 0 |
OtherAcquisitionsNotBroadcom [Domain] | |
Goodwill [Roll Forward] | |
Other acquisition | 13 |
OtherAcquisitionsNotBroadcom [Domain] | Wired Infrastructure | |
Goodwill [Roll Forward] | |
Other acquisition | 13 |
OtherAcquisitionsNotBroadcom [Domain] | Wireless Communications | |
Goodwill [Roll Forward] | |
Other acquisition | 0 |
OtherAcquisitionsNotBroadcom [Domain] | Enterprise Storage | |
Goodwill [Roll Forward] | |
Other acquisition | 0 |
OtherAcquisitionsNotBroadcom [Domain] | Industrial & Other | |
Goodwill [Roll Forward] | |
Other acquisition | $ 0 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | Feb. 04, 2018 | Oct. 29, 2017 |
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 18,070 | $ 17,627 |
Accumulated Amortization | (5,415) | (7,507) |
Net Book Value | 12,655 | 10,120 |
Intangible assets, gross | 18,586 | 18,339 |
Intangible assets, net book value | 13,171 | 10,832 |
IPR&D | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
IPR&D | 516 | 712 |
Purchased technology | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,554 | 12,724 |
Accumulated Amortization | (4,533) | (4,265) |
Net Book Value | 11,021 | 8,459 |
Customer contracts and related relationships | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,792 | 4,240 |
Accumulated Amortization | (716) | (3,100) |
Net Book Value | 1,076 | 1,140 |
Trade names | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 578 | 528 |
Accumulated Amortization | (130) | (117) |
Net Book Value | 448 | 411 |
Other | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 146 | 135 |
Accumulated Amortization | (36) | (25) |
Net Book Value | $ 110 | $ 110 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets (Intangible asset amortization) (Details) - USD ($) $ in Millions | Feb. 04, 2018 | Oct. 29, 2017 |
Finite-lived intangible assets future amortization expense | ||
2018 (remainder) | $ 2,492 | |
2,019 | 2,846 | |
2,020 | 2,390 | |
2,021 | 1,893 | |
2,022 | 1,389 | |
Thereafter | 1,645 | |
Net Book Value | $ 12,655 | $ 10,120 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets (Intangible asset life) (Details) | 3 Months Ended |
Feb. 04, 2018 | |
Purchased technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 6 years |
Customer contracts and related relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 6 years |
Trade names | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 12 years |
Other | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 10 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | |
Earnings Per Share [Abstract] | ||
Income (loss) from continuing operations | $ 6,581 | $ 257 |
Less: Income from continuing operations attributable to noncontrolling interest | 337 | 13 |
Income from continuing operations attributable to ordinary shares | 6,244 | 244 |
Loss from discontinued operations, net of income taxes | (15) | (5) |
Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest | (1) | 0 |
Loss from discontinued operations, net of income taxes, attributable to ordinary shares | (14) | (5) |
Net income attributable to ordinary shares | 6,230 | 239 |
Income (loss) from continuing operations, net of tax, for diluted earnings per share calculation | 6,244 | 257 |
Loss from dscontinued operations, net of tax, for diluted earnings per share calculation | (14) | (5) |
Net income (loss), for diluted earnings per share calculation | $ 6,230 | $ 252 |
Weighted-average ordinary shares outstanding - basic | 410 | 399 |
Dilutive effect of equity awards | 16 | 17 |
Exchange of noncontrolling interest for ordinary shares | 0 | 23 |
Weighted-average ordinary shares outstanding - diluted | 426 | 439 |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 22 |
Borrowings (Details)
Borrowings (Details) $ in Millions | 3 Months Ended | ||
Feb. 04, 2018USD ($) | Nov. 17, 2017USD ($) | Oct. 29, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 17,727 | $ 17,689 | |
Unaccreted discount and unamortized debt issuance costs | (135) | (141) | |
Carrying value of Senior Notes | $ 17,592 | $ 17,548 | |
January 2020 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.615% | 2.615% | |
Interest Rate | 2.375% | 2.375% | |
Long-term Debt, Gross | $ 2,750 | $ 2,750 | |
January 2021 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.406% | 2.406% | |
Interest Rate | 2.20% | 2.20% | |
Long-term Debt, Gross | $ 750 | $ 750 | |
January2022SeniorNotes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.214% | 3.214% | |
Interest Rate | 3.00% | 3.00% | |
Long-term Debt, Gross | $ 3,500 | $ 3,500 | |
January 2023 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.781% | 2.781% | |
Interest Rate | 2.65% | 2.65% | |
Long-term Debt, Gross | $ 1,000 | $ 1,000 | |
January 2024 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.744% | 3.744% | |
Interest Rate | 3.625% | 3.625% | |
Long-term Debt, Gross | $ 2,500 | $ 2,500 | |
January 2025 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.234% | 3.234% | |
Interest Rate | 3.125% | 3.125% | |
Long-term Debt, Gross | $ 1,000 | $ 1,000 | |
January 2027 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.018% | 4.018% | |
Interest Rate | 3.875% | 3.875% | |
Long-term Debt, Gross | $ 4,800 | $ 4,800 | |
January 2028 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.596% | 3.596% | |
Interest Rate | 3.50% | 3.50% | |
Long-term Debt, Gross | $ 1,250 | $ 1,250 | |
2017 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of Senior Notes | $ 17,550 | 17,550 | |
Debt Instrument, Redemption Price, Percentage | 101.00% | ||
2020 Convertible Note [Member] | Brocade Communications Systems, Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 0.628% | ||
Notes Assumed | $ 548 | ||
Interest Rate | 1.375% | ||
Long-term Debt, Gross | $ 38 | ||
Convertible Notes Payable | $ 0 | ||
Debt Instrument, Face Amount | $ 575 | ||
Debt Instrument, Repurchased Face Amount | $ 537 | ||
2018 Senior Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.70% | 2.70% | |
Interest Rate | 2.70% | 2.70% | |
Long-term Debt, Gross | $ 117 | $ 117 | |
2022, 2024 & 2034 Senior Notes [Member] [Domain] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 22 | 22 | |
BRCM Senior Notes [Member] | BRCM [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 139 | $ 139 | |
BRCD 2023 Senior Notes [Member] | Brocade Communications Systems, Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Repayments of assumed debt | $ 308 | ||
Interest Rate | 4.625% | ||
Debt Instrument, Face Amount | $ 300 | ||
Minimum [Member] | 2022, 2024 & 2034 Senior Notes [Member] [Domain] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 2.50% | 2.50% | |
Interest Rate | 2.50% | 2.50% | |
Maximum [Member] | 2022, 2024 & 2034 Senior Notes [Member] [Domain] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | 4.50% | |
Interest Rate | 4.50% | 4.50% | |
Fair Value, Inputs, Level 2 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Fair Value | $ 17,183 | ||
Debt Instrument, Redemption, Period One [Member] | 2020 Convertible Note [Member] | Brocade Communications Systems, Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Redemption Price, Per $1000 | 1,018 | ||
Debt Instrument, Redemption, Period Two [Member] | 2020 Convertible Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Redemption Price, Per $1000 | 812 |
Borrowings (Future Principal Pa
Borrowings (Future Principal Payments) (Details) $ in Millions | Feb. 04, 2018USD ($) |
Debt Disclosure [Abstract] | |
2018 (remainder) | $ 117 |
2,019 | 0 |
2,020 | 2,788 |
2,021 | 750 |
2,022 | 3,509 |
Thereafter | 10,563 |
Total | $ 17,727 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) $ / shares in Units, shares in Millions, $ in Millions | Jan. 30, 2017shares | Feb. 04, 2018USD ($)$ / shares | Jan. 29, 2017USD ($)$ / shares | Oct. 29, 2017 |
Business Acquisition [Line Items] | ||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 5 | |||
Ordinary Shares [Member] | ||||
Business Acquisition [Line Items] | ||||
Common stock, shares registered for exchange | shares | 23 | |||
Cash dividends paid per ordinary share | $ / shares | $ 1.75 | $ 1.02 | ||
Cash dividends paid to ordinary shareholders | $ 717 | $ 408 | ||
Restricted Exchangeable Unit [Member] | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | 5.00% | ||
Restricted Exchangeable Units, Convertible, Conversion Ratio | 1 |
Shareholders' Equity (Share-bas
Shareholders' Equity (Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 04, 2018 | Jan. 29, 2017 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 299 | $ 201 | [1] |
Cost of products sold | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 20 | 14 | |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | 203 | 141 | |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 76 | 46 | |
Discontinued Operations, Held-for-sale [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Allocated Share-based Compensation Expense | $ 1 | ||
[1] | (a) Does not include $1 million of share-based compensation expense related to discontinued operations recognized during the fiscal quarter ended January 29, 2017. |
Shareholders' Equity (RSU Activ
Shareholders' Equity (RSU Activity) (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Feb. 04, 2018USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Threshold for reporting in the equity award activity table | 0.5 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of RSUs vested during the period | $ | $ 121 | |
Total unrecognized compensation cost, RSUs and market based RSUs | $ | $ 2,190 | |
Period for recognition | 2 years 10 months 25 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Beginning Balance (shares) | 18 | |
Granted (shares) | 1 | |
Vested (shares) | 0 | [1] |
Forfeited (shares) | 0 | [1] |
Ending Balance (shares) | 19 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Beginning balance, weighted average grant-date fair value per share | $ / shares | $ 163.42 | |
Restricted stock units granted, weighted average grant date fair value per share | $ / shares | 235.77 | |
Restricted stock units vested, weighted average grant date fair value per share | $ / shares | 131.14 | |
Restricted stock units, cancelled, weighted average grant date fair value | $ / shares | 141.36 | |
Ending balance, weighted average grant-date fair value per share | $ / shares | $ 170.59 | |
[1] | * Represents less than 0.5 million shares. |
Shareholders' Equity (Option Ac
Shareholders' Equity (Option Activity) (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Feb. 04, 2018USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Threshold for reporting in the equity award activity table | 0.5 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost, stock options | $ | $ 8 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 6 months 16 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning Balance (shares) | 10 | |
Exercised (shares) | 0 | [1] |
Cancelled (shares) | 0 | [1] |
Ending Balance (shares) | 10 | |
Fully vested (shares) | 9 | |
Fully vested and expected to vest (shares) | 10 | |
Option Awards Outstanding, Weighted-average Exercise Price | ||
Beginning balance weighted average exercise price per share | $ / shares | $ 49.54 | |
Exercised weighted average exercise price per share | $ / shares | 44.75 | |
Cancelled weighted average exercise price per share | $ / shares | 78.66 | |
Ending balance weighted average exercise price per share | $ / shares | 49.88 | |
Vested, weighted-average exercise price per share (in dollars per share) | $ / shares | 47.79 | |
Vested and expected to vest, weighted-average exercise price per share (in dollars per share) | $ / shares | $ 49.88 | |
Additional Option Disclosures | ||
Outstanding, weighted-average remaining contractual life (years) | 2 years 7 months 14 days | |
Outstanding, aggregate intrinsic value | $ | $ 1,786 | |
Vested, weighted-average remaining contractual life (years) | 2 years 6 months 21 days | |
Vested, aggregate intrinsic value | $ | $ 1,651 | |
Vested and expected to vest, weighted-average remaining contractual life (years) | 2 years 7 months 14 days | |
Vested and expected to vest, aggregate intrinsic value | $ | $ 1,786 | |
Total intrinsic value of options exercised | $ | $ 163 | |
[1] | * Represents less than 0.5 million shares. |
Partners' Capital (Details)
Partners' Capital (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Feb. 04, 2018USD ($)$ / shares | Jan. 29, 2017USD ($)$ / shares | |
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 5 | |
Capital transactions made by General Partner to Partnership | 42 | $ 61 |
Broadcom Cayman L.P. [Member] | ||
Cash distributions paid to General Partner | $ 717 | $ 408 |
Cash distributions paid per LP Unit | $ / shares | $ 1.75 | $ 1.02 |
Cash distributions paid to Limited Partners | $ 38 | $ 23 |
Broadcom-Delaware [Member] | ||
Share Exchange Ratio | 1 | |
Restricted Exchangeable Unit [Member] | ||
Restricted Exchangeable Units, Convertible, Conversion Ratio | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 04, 2018 | Jan. 29, 2017 | Nov. 04, 2018 | Oct. 29, 2017 | |
Income Tax Contingency [Line Items] | ||||
Provision for (benefit from) income taxes | $ (5,786) | $ 10 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |||
Tax Cuts and Jobs Act of 2017, Provisional Tax Benefit | $ 5,810 | |||
Tax Cuts and Jobs Act of 2017, Remeasurement of Deferred Assets and Liabilities to Reverse Future | 88 | |||
Tax Cuts and Jobs Act of 2017, Transition Tax Benefit | 5,722 | |||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 10,392 | |||
Tax Cuts And Jobs Act Of 2017, Transition Tax For Accumulated Foreign Earnings, Provisional Income Tax Payable | 2,547 | |||
Tax Cuts And Jobs Act Of 2017, unrecognized tax benefit related to Transition Tax For Accumulated Foreign Earnings, Provisional Income Tax Payable | 2,179 | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 42 | |||
Unrecognized Tax Benefits, Period Increase (Decrease) | 2,308 | |||
Unrecognized Tax Benefits | 4,564 | $ 2,256 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 150 | 132 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 4,714 | $ 2,388 | ||
Maximum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits that may be recognized | 250 | |||
Scenario, Forecast [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Brocade Communications Systems, Inc. [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Deferred Tax Liabilities, Net | $ 845 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Feb. 04, 2018USD ($)segmentCustomer | Jan. 29, 2017USD ($)Customer | Oct. 29, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 4 | ||
Net revenue | $ 5,327 | $ 4,139 | |
Operating Income (Loss) | 943 | 506 | |
Wireless Communications | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 2,210 | 1,175 | |
Operating Income (Loss) | 1,059 | 427 | |
Wired Infrastructure | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 1,875 | 2,084 | |
Operating Income (Loss) | 787 | 933 | |
Enterprise storage | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 991 | 707 | |
Operating Income (Loss) | 579 | 375 | |
Industrial & Other | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 251 | 173 | |
Operating Income (Loss) | 142 | 61 | |
Unallocated expenses | |||
Segment Reporting Information [Line Items] | |||
Operating Income (Loss) | $ (1,624) | $ (1,290) | |
Customer Concentration Risk | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Number of Major Customers | Customer | 1 | 1 | |
Customer Concentration Risk | Sales | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Number of Major Customers | Customer | 1 | 1 | |
Major Customer One | Customer Concentration Risk | Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 19.00% | 17.00% | |
Major Customer One | Customer Concentration Risk | Sales | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 18.00% | 15.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Feb. 04, 2018 | Jan. 29, 2017 | Oct. 29, 2017 | |
Related Party Transactions [Abstract] | |||
Total net revenue | $ 182 | $ 77 | |
Total costs and expenses, including inventory purchases | 36 | $ 19 | |
Total receivables | 109 | $ 31 | |
Total payables | $ 16 | $ 12 |
Commitments and Contingencies59
Commitments and Contingencies (Details) $ in Millions | Feb. 04, 2018USD ($) |
Debt principal, interest and fees | |
Debt principal, interest and fees | $ 21,373 |
Long Term Debt, Interest, Fees and Repayment of Principal, Fiscal Year One | 432 |
Debt Principal, Interest and Fees, due in 2019 | 566 |
Debt Principal, Interest and Fees, due in 2020 | 3,321 |
Debt Principal, Interest and Fees, due in 2021 | 1,242 |
Debt Principal, Interest and Fees, due in 2022 | 3,940 |
Debt Principal, Interest and Fees, Thereafter | 11,872 |
Purchase commitments | |
Purchase Commitments, Total | 996 |
Purchase Commitments, 2018 | 908 |
Purchase Commitments, 2019 | 69 |
Purchase Commitments, 2020 | 18 |
Purchase Commitments, 2021 | 1 |
Purchase Commitments, 2022 | 0 |
Purchase Commitments, Thereafter | $ 0 |
Commitments and Contingencies60
Commitments and Contingencies (Textuals) (Details) $ in Millions | Jan. 31, 2017patent | Nov. 07, 2016patent | Jun. 19, 2016patent | May 23, 2016patent | Sep. 04, 2015lawsuit | Jan. 18, 2017lawsuit | Jul. 31, 2014lawsuit | Feb. 04, 2018USD ($)lawsuit | Jan. 31, 2016lawsuit | Oct. 29, 2017USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Unrecognized tax benefits including interest and penalties | $ | [1],[2] | $ 4,212 | $ 1,011 | ||||||||
BrocadeMerger [Member] | Pending Litigation | Northern District of California [Member] | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Lawsuits filed | 6 | ||||||||||
Tessera Tech, Inc., Tessera, Inc. and Invensas Corp [Member] | U.S. International Trade Commission [Domain] | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 3 | ||||||||||
Tessera Tech, Inc., Tessera, Inc. and Invensas Corp [Member] | District of Delaware [Member] | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 3 | 2 | 3 | ||||||||
Tessera, Tessera Advanced Technologies, Inc. [Member] | District of Delaware [Member] | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 3 | 4 | |||||||||
Tessera, Tessera Advanced Technologies, Inc. [Member] | UNITED STATES | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 7 | ||||||||||
Invensas [Member] | District of Delaware [Member] | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 2 | ||||||||||
Emulex Shareholders [Member] | Pending Litigation | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Lawsuits filed | 2 | ||||||||||
Emulex Shareholders Consolidated [Member] | Pending Litigation | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Lawsuits filed | 3 | ||||||||||
In re PLX Technology, Inc. S'holder Litig. | Settled Litigation [Member] | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Lawsuits filed | 4 | ||||||||||
In re PLX Technology, Inc. Stockholders Litigation, Consol. | Pending Litigation | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Lawsuits filed | 5 | ||||||||||
Loss Contingency, Number of Defendants, Directors | 5 | ||||||||||
In re PLX Technology, Inc. Stockholders Litigation, Consol. | Motions Granted [Member] | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Loss Contingency, Number of Defendants, Directors | 2 | ||||||||||
Minimum [Member] | Tessera Tech, Inc., Tessera, Inc. and Invensas Corp [Member] | U.S. International Trade Commission [Domain] | |||||||||||
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 1 | ||||||||||
[1] | (a) Refer to Note 9. “Income Taxes” for additional information regarding these balances. | ||||||||||
[2] | (b) Includes accrued interest and penalties. |
Restructuring Charges (Details)
Restructuring Charges (Details) $ in Millions | 3 Months Ended | ||
Feb. 04, 2018USD ($)employees | Jan. 29, 2017USD ($) | ||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 29, 2017 | $ 45 | ||
Restructuring charges (a) | [1] | 140 | |
Utilization | (91) | ||
Balance as of February 4, 2018 (b) | [2] | 94 | |
Impairment of Long-Lived Assets Held-for-use | 6 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 10 | ||
Employee Termination Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 29, 2017 | 28 | ||
Restructuring charges (a) | [1] | 102 | |
Utilization | (72) | ||
Balance as of February 4, 2018 (b) | [2] | $ 58 | |
Expected completion date | May 6, 2018 | ||
Leases and Other Exit Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance as of October 29, 2017 | $ 17 | ||
Restructuring charges (a) | [1] | 38 | |
Utilization | (19) | ||
Balance as of February 4, 2018 (b) | [2] | $ 36 | |
Expected completion date | Mar. 31, 2025 | ||
Brocade Communications Systems, Inc. [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employees | 950 | ||
Restructuring Charges | $ 108 | ||
Broadcom Transaction [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Charges | 31 | $ 42 | |
Discontinued Operations, Held-for-sale [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges (a) | $ 1 | ||
[1] | (a) Included $1 million of restructuring expense related to discontinued operations recognized during the fiscal quarter ended February 4, 2018, which was included in loss from discontinued operations in our condensed consolidated statements of operations. | ||
[2] | (b) The majority of the employee termination costs balance is expected to be paid by the second quarter of fiscal year 2018. The leases and other exit costs balance represents lease obligations that are expected to be paid over their remaining terms through fiscal year 2025. |
Subsequent Events - Cash Divide
Subsequent Events - Cash Dividends (Details) - Subsequent Event - $ / shares | Mar. 29, 2018 | Mar. 22, 2018 | Mar. 14, 2018 |
Dividends Payable [Line Items] | |||
Dividends payable, date declared | Mar. 14, 2018 | ||
Common Stock, Dividends, Per Share, Declared | $ 1.75 | ||
Dividends payable, date to be paid | Mar. 29, 2018 | ||
Dividends payable, date of record | Mar. 22, 2018 | ||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 1.75 | ||
Distribution Made to Limited Partner, Distribution Date | Mar. 29, 2018 | ||
Distribution Made to Limited Partner, Date of Record | Mar. 22, 2018 |
Condensed Consolidating Finan63
Condensed Consolidating Financial Information (Balance Sheet) (Details) - USD ($) $ in Millions | Feb. 04, 2018 | Oct. 29, 2017 | Jan. 29, 2017 | Oct. 30, 2016 | |
Current assets: | |||||
Cash and cash equivalents | $ 7,076 | $ 11,204 | $ 3,536 | $ 3,097 | |
Trade accounts receivable, net | 2,459 | 2,448 | |||
Inventory | 1,291 | 1,447 | |||
Other current assets | 394 | 724 | |||
Total current assets | 11,220 | 15,823 | |||
Property, plant and equipment, net | 2,747 | 2,599 | |||
Goodwill | 26,899 | 24,706 | |||
Intangible assets, net | 13,171 | 10,832 | |||
Other long-term assets | 507 | 458 | |||
Total assets | 54,544 | 54,418 | |||
Current liabilities: | |||||
Accounts payable | 816 | 1,105 | |||
Employee compensation and benefits | 333 | 626 | |||
Current portion of long-term debt | 117 | 117 | |||
Other current liabilities | 704 | 681 | |||
Total current liabilities | 1,970 | 2,529 | |||
Long-term liabilities: | |||||
Long-term debt | 17,475 | 17,431 | |||
Deferred tax liabilities | [1] | 1,243 | 10,019 | ||
Unrecognized tax benefits | [1],[2] | 4,212 | 1,011 | ||
Other Long Term Liabilities | 563 | 242 | |||
Total liabilities | 25,463 | 31,232 | |||
Total liabilities and shareholders’ equity/partners' capital | 54,544 | 54,418 | |||
Eliminations [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Trade accounts receivable, net | 0 | 0 | |||
Inventory | 0 | 0 | |||
Intercompany receivable | (2,864) | (621) | |||
Intercompany loan receivable | (13,976) | (10,768) | |||
Other current assets | 0 | 0 | |||
Total current assets | (16,840) | (11,389) | |||
Property, plant and equipment, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Investment in subsidiaries | (130,312) | (94,611) | |||
Intercompany loan receivable, long-term | (42,400) | (41,547) | |||
Other long-term assets | 0 | 0 | |||
Total assets | (189,552) | (147,547) | |||
Current liabilities: | |||||
Accounts payable | 0 | 0 | |||
Employee compensation and benefits | 0 | 0 | |||
Current portion of long-term debt | 0 | 0 | |||
Intercompany payable | (2,864) | (621) | |||
Intercompany loan payable | (13,976) | (10,768) | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | (16,840) | (11,389) | |||
Long-term liabilities: | |||||
Long-term debt | 0 | 0 | |||
Deferred tax liabilities | 0 | 0 | |||
Intercompany loan payable, long-term | (42,400) | (41,547) | |||
Unrecognized tax benefits | 0 | 0 | |||
Other Long Term Liabilities | 0 | 0 | |||
Total liabilities | (59,240) | (52,936) | |||
Total partners’ capital | (130,312) | (94,611) | |||
Total liabilities and shareholders’ equity/partners' capital | (189,552) | (147,547) | |||
Parent Guarantor [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 30 | 7 | 7 | 0 | |
Trade accounts receivable, net | 0 | 0 | |||
Inventory | 0 | 0 | |||
Intercompany receivable | 20 | 33 | |||
Intercompany loan receivable | 0 | 28 | |||
Other current assets | 89 | 84 | |||
Total current assets | 139 | 152 | |||
Property, plant and equipment, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Investment in subsidiaries | 29,038 | 23,112 | |||
Intercompany loan receivable, long-term | 0 | 0 | |||
Other long-term assets | 0 | 0 | |||
Total assets | 29,177 | 23,264 | |||
Current liabilities: | |||||
Accounts payable | 3 | 7 | |||
Employee compensation and benefits | 0 | 0 | |||
Current portion of long-term debt | 0 | 0 | |||
Intercompany payable | 175 | 124 | |||
Intercompany loan payable | 21 | 50 | |||
Other current liabilities | 0 | 0 | |||
Total current liabilities | 199 | 181 | |||
Long-term liabilities: | |||||
Long-term debt | 0 | 0 | |||
Deferred tax liabilities | 0 | 0 | |||
Intercompany loan payable, long-term | 0 | 0 | |||
Unrecognized tax benefits | 0 | 0 | |||
Other Long Term Liabilities | 0 | 0 | |||
Total liabilities | 199 | 181 | |||
Total partners’ capital | 28,978 | 23,083 | |||
Total liabilities and shareholders’ equity/partners' capital | 29,177 | 23,264 | |||
Subsidiaries Issuers [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 4,508 | 7,555 | 1,748 | 1,092 | |
Trade accounts receivable, net | 0 | 0 | |||
Inventory | 0 | 0 | |||
Intercompany receivable | 1,369 | 279 | |||
Intercompany loan receivable | 1,831 | 1,891 | |||
Other current assets | 115 | 350 | |||
Total current assets | 7,823 | 10,075 | |||
Property, plant and equipment, net | 222 | 207 | |||
Goodwill | 1,360 | 1,360 | |||
Intangible assets, net | 0 | 0 | |||
Investment in subsidiaries | 43,814 | 28,049 | |||
Intercompany loan receivable, long-term | 41,485 | 41,547 | |||
Other long-term assets | 29 | 213 | |||
Total assets | 94,733 | 81,451 | |||
Current liabilities: | |||||
Accounts payable | 49 | 72 | |||
Employee compensation and benefits | 84 | 274 | |||
Current portion of long-term debt | 117 | 117 | |||
Intercompany payable | 1,325 | 186 | |||
Intercompany loan payable | 12,124 | 8,799 | |||
Other current liabilities | 551 | 254 | |||
Total current liabilities | 14,250 | 9,702 | |||
Long-term liabilities: | |||||
Long-term debt | 17,437 | 17,431 | |||
Deferred tax liabilities | 782 | 10,293 | |||
Intercompany loan payable, long-term | 915 | 0 | |||
Unrecognized tax benefits | 3,480 | 497 | |||
Other Long Term Liabilities | 406 | 76 | |||
Total liabilities | 37,270 | 37,999 | |||
Total partners’ capital | 57,463 | 43,452 | |||
Total liabilities and shareholders’ equity/partners' capital | 94,733 | 81,451 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 2,348 | 3,455 | 1,638 | 1,952 | |
Trade accounts receivable, net | 2,459 | 2,448 | |||
Inventory | 1,291 | 1,447 | |||
Intercompany receivable | 1,475 | 309 | |||
Intercompany loan receivable | 12,145 | 8,849 | |||
Other current assets | 277 | 374 | |||
Total current assets | 19,995 | 16,882 | |||
Property, plant and equipment, net | 2,525 | 2,392 | |||
Goodwill | 25,539 | 23,346 | |||
Intangible assets, net | 13,171 | 10,832 | |||
Investment in subsidiaries | 57,460 | 43,450 | |||
Intercompany loan receivable, long-term | 915 | 0 | |||
Other long-term assets | 478 | 245 | |||
Total assets | 120,083 | 97,147 | |||
Current liabilities: | |||||
Accounts payable | 764 | 1,026 | |||
Employee compensation and benefits | 249 | 352 | |||
Current portion of long-term debt | 0 | 0 | |||
Intercompany payable | 1,364 | 311 | |||
Intercompany loan payable | 1,831 | 1,919 | |||
Other current liabilities | 153 | 427 | |||
Total current liabilities | 4,361 | 4,035 | |||
Long-term liabilities: | |||||
Long-term debt | 38 | 0 | |||
Deferred tax liabilities | 461 | (274) | |||
Intercompany loan payable, long-term | 41,485 | 41,547 | |||
Unrecognized tax benefits | 732 | 514 | |||
Other Long Term Liabilities | 157 | 166 | |||
Total liabilities | 47,234 | 45,988 | |||
Total partners’ capital | 72,849 | 51,159 | |||
Total liabilities and shareholders’ equity/partners' capital | 120,083 | 97,147 | |||
Broadcom Cayman L.P. [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 6,886 | 11,017 | $ 3,393 | $ 3,044 | |
Trade accounts receivable, net | 2,459 | 2,448 | |||
Inventory | 1,291 | 1,447 | |||
Intercompany receivable | 0 | 0 | |||
Intercompany loan receivable | 0 | 0 | |||
Other current assets | 481 | 808 | |||
Total current assets | 11,117 | 15,720 | |||
Property, plant and equipment, net | 2,747 | 2,599 | |||
Goodwill | 26,899 | 24,706 | |||
Intangible assets, net | 13,171 | 10,832 | |||
Investment in subsidiaries | 0 | 0 | |||
Intercompany loan receivable, long-term | 0 | 0 | |||
Other long-term assets | 507 | 458 | |||
Total assets | 54,441 | 54,315 | |||
Current liabilities: | |||||
Accounts payable | 816 | 1,105 | |||
Employee compensation and benefits | 333 | 626 | |||
Current portion of long-term debt | 117 | 117 | |||
Intercompany payable | 0 | 0 | |||
Intercompany loan payable | 0 | 0 | |||
Other current liabilities | 704 | 681 | |||
Total current liabilities | 1,970 | 2,529 | |||
Long-term liabilities: | |||||
Long-term debt | 17,475 | 17,431 | |||
Deferred tax liabilities | 1,243 | 10,019 | |||
Intercompany loan payable, long-term | 0 | 0 | |||
Unrecognized tax benefits | 4,212 | 1,011 | |||
Other Long Term Liabilities | 563 | 242 | |||
Total liabilities | 25,463 | 31,232 | |||
Total partners’ capital | 28,978 | 23,083 | |||
Total liabilities and shareholders’ equity/partners' capital | $ 54,441 | $ 54,315 | |||
[1] | (a) Refer to Note 9. “Income Taxes” for additional information regarding these balances. | ||||
[2] | (b) Includes accrued interest and penalties. |
Condensed Consolidating Finan64
Condensed Consolidating Financial Information (Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||
Total revenue | $ 5,327 | $ 4,139 |
Cost of products sold: | ||
Cost of products sold | 1,899 | 1,573 |
Purchase accounting effect on inventory | 70 | 0 |
Amortization of acquisition-related intangible assets | 715 | 559 |
Restructuring charges | 15 | 6 |
Total cost of products sold | 2,699 | 2,138 |
Gross margin | 2,628 | 2,001 |
Research and development | 925 | 808 |
Selling, general and administrative | 291 | 201 |
Amortization of acquisition-related intangible assets | 339 | 440 |
Restructuring, impairment and disposal charges | 130 | 46 |
Total operating expenses | 1,685 | 1,495 |
Operating income | 943 | 506 |
Interest expense | (183) | (111) |
Loss on extinguishment of debt | 0 | (159) |
Other income, net | 35 | 31 |
Income from continuing operations before income taxes | 795 | 267 |
Provision for (benefit from) income taxes | (5,786) | 10 |
Income from continuing operations | 6,581 | 257 |
Income (loss) from discontinued operations, net of income taxes | (15) | (5) |
Net income | 6,566 | 252 |
Other Comprehensive Income | ||
Net income (loss) | 6,566 | 252 |
Unrealized gain on available-for-sale investments | 9 | 0 |
Other comprehensive income | 9 | 0 |
Comprehensive income | 6,575 | 252 |
Eliminations [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 0 | 0 |
Intercompany revenue | (584) | (378) |
Total revenue | (584) | (378) |
Cost of products sold: | ||
Cost of products sold | 0 | 0 |
Intercompany cost of products sold | (34) | (47) |
Purchase accounting effect on inventory | 0 | |
Amortization of acquisition-related intangible assets | 0 | 0 |
Restructuring charges | 0 | 0 |
Total cost of products sold | (34) | (47) |
Gross margin | (550) | (331) |
Research and development | 0 | 0 |
Intercompany operating expense | (550) | (331) |
Selling, general and administrative | 0 | 0 |
Amortization of acquisition-related intangible assets | 0 | 0 |
Restructuring, impairment and disposal charges | 0 | 0 |
Total operating expenses | (550) | (331) |
Operating income | 0 | 0 |
Interest expense | 0 | 0 |
Intercompany interest expense | 633 | 79 |
Loss on extinguishment of debt | 0 | |
Other income, net | 0 | 0 |
Intercompany interest income | (633) | (79) |
Intercompany other income (expense), net | 0 | 0 |
Income from continuing operations before income taxes | 0 | 0 |
Provision for (benefit from) income taxes | 0 | 0 |
Income from continuing operations | 0 | 0 |
Earnings in (loss from) subsidiaries | (23,848) | 676 |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | (23,848) | 676 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 |
Net income | (23,848) | 676 |
Other Comprehensive Income | ||
Net income (loss) | (23,848) | 676 |
Unrealized gain on available-for-sale investments | 0 | |
Other comprehensive income | 0 | |
Comprehensive income | (23,848) | 676 |
Parent Guarantor [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 0 | 0 |
Intercompany revenue | 0 | 0 |
Total revenue | 0 | 0 |
Cost of products sold: | ||
Cost of products sold | 0 | 0 |
Intercompany cost of products sold | 0 | 0 |
Purchase accounting effect on inventory | 0 | |
Amortization of acquisition-related intangible assets | 0 | 0 |
Restructuring charges | 0 | 0 |
Total cost of products sold | 0 | 0 |
Gross margin | 0 | 0 |
Research and development | 0 | 0 |
Intercompany operating expense | 0 | 0 |
Selling, general and administrative | 34 | 7 |
Amortization of acquisition-related intangible assets | 0 | 0 |
Restructuring, impairment and disposal charges | 0 | 0 |
Total operating expenses | 34 | 7 |
Operating income | (34) | (7) |
Interest expense | 0 | 0 |
Intercompany interest expense | 0 | (1) |
Loss on extinguishment of debt | 0 | |
Other income, net | 1 | 0 |
Intercompany interest income | 0 | 1 |
Intercompany other income (expense), net | 179 | 201 |
Income from continuing operations before income taxes | 146 | 194 |
Provision for (benefit from) income taxes | 0 | 0 |
Income from continuing operations | 146 | 194 |
Earnings in (loss from) subsidiaries | 6,420 | 58 |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 6,566 | 252 |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 |
Net income | 6,566 | 252 |
Other Comprehensive Income | ||
Net income (loss) | 6,566 | 252 |
Unrealized gain on available-for-sale investments | 0 | |
Other comprehensive income | 0 | |
Comprehensive income | 6,566 | 252 |
Subsidiaries Issuers [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 0 | 73 |
Intercompany revenue | 584 | 381 |
Total revenue | 584 | 454 |
Cost of products sold: | ||
Cost of products sold | 32 | 45 |
Intercompany cost of products sold | 0 | (12) |
Purchase accounting effect on inventory | 0 | |
Amortization of acquisition-related intangible assets | 0 | 7 |
Restructuring charges | 2 | 3 |
Total cost of products sold | 34 | 43 |
Gross margin | 550 | 411 |
Research and development | 406 | 367 |
Intercompany operating expense | 0 | (80) |
Selling, general and administrative | 85 | 94 |
Amortization of acquisition-related intangible assets | 0 | 7 |
Restructuring, impairment and disposal charges | 33 | 15 |
Total operating expenses | 524 | 403 |
Operating income | 26 | 8 |
Interest expense | (181) | (51) |
Intercompany interest expense | (59) | (74) |
Loss on extinguishment of debt | (52) | |
Other income, net | 19 | (2) |
Intercompany interest income | 574 | 4 |
Intercompany other income (expense), net | (57) | (66) |
Income from continuing operations before income taxes | 322 | (233) |
Provision for (benefit from) income taxes | (5,460) | 30 |
Income from continuing operations | 5,782 | (263) |
Earnings in (loss from) subsidiaries | 5,823 | (231) |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 11,605 | (494) |
Income (loss) from discontinued operations, net of income taxes | 0 | (10) |
Net income | 11,605 | (504) |
Other Comprehensive Income | ||
Net income (loss) | 11,605 | (504) |
Unrealized gain on available-for-sale investments | (9) | |
Other comprehensive income | 9 | |
Comprehensive income | 11,614 | (504) |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 5,327 | 4,066 |
Intercompany revenue | 0 | (3) |
Total revenue | 5,327 | 4,063 |
Cost of products sold: | ||
Cost of products sold | 1,867 | 1,528 |
Intercompany cost of products sold | 34 | 59 |
Purchase accounting effect on inventory | 70 | |
Amortization of acquisition-related intangible assets | 715 | 552 |
Restructuring charges | 13 | 3 |
Total cost of products sold | 2,699 | 2,142 |
Gross margin | 2,628 | 1,921 |
Research and development | 519 | 441 |
Intercompany operating expense | 550 | 411 |
Selling, general and administrative | 172 | 100 |
Amortization of acquisition-related intangible assets | 339 | 433 |
Restructuring, impairment and disposal charges | 97 | 31 |
Total operating expenses | 1,677 | 1,416 |
Operating income | 951 | 505 |
Interest expense | (2) | (60) |
Intercompany interest expense | (574) | (4) |
Loss on extinguishment of debt | (107) | |
Other income, net | 15 | 33 |
Intercompany interest income | 59 | 74 |
Intercompany other income (expense), net | (122) | (135) |
Income from continuing operations before income taxes | 327 | 306 |
Provision for (benefit from) income taxes | (326) | (20) |
Income from continuing operations | 653 | 326 |
Earnings in (loss from) subsidiaries | 11,605 | (503) |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 12,258 | (177) |
Income (loss) from discontinued operations, net of income taxes | (15) | 5 |
Net income | 12,243 | (172) |
Other Comprehensive Income | ||
Net income (loss) | 12,243 | (172) |
Unrealized gain on available-for-sale investments | 0 | |
Other comprehensive income | 0 | |
Comprehensive income | 12,243 | (172) |
Broadcom Cayman L.P. [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Net revenue | 5,327 | 4,139 |
Intercompany revenue | 0 | 0 |
Total revenue | 5,327 | 4,139 |
Cost of products sold: | ||
Cost of products sold | 1,899 | 1,573 |
Intercompany cost of products sold | 0 | 0 |
Purchase accounting effect on inventory | 70 | 0 |
Amortization of acquisition-related intangible assets | 715 | 559 |
Restructuring charges | 15 | 6 |
Total cost of products sold | 2,699 | 2,138 |
Gross margin | 2,628 | 2,001 |
Research and development | 925 | 808 |
Intercompany operating expense | 0 | 0 |
Selling, general and administrative | 291 | 201 |
Amortization of acquisition-related intangible assets | 339 | 440 |
Restructuring, impairment and disposal charges | 130 | 46 |
Total operating expenses | 1,685 | 1,495 |
Operating income | 943 | 506 |
Interest expense | (183) | (111) |
Intercompany interest expense | 0 | 0 |
Loss on extinguishment of debt | 0 | (159) |
Other income, net | 35 | 31 |
Intercompany interest income | 0 | 0 |
Intercompany other income (expense), net | 0 | 0 |
Income from continuing operations before income taxes | 795 | 267 |
Provision for (benefit from) income taxes | (5,786) | 10 |
Income from continuing operations | 6,581 | 257 |
Earnings in (loss from) subsidiaries | 0 | 0 |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 6,581 | 257 |
Income (loss) from discontinued operations, net of income taxes | (15) | (5) |
Net income | 6,566 | 252 |
Other Comprehensive Income | ||
Net income (loss) | 6,566 | 252 |
Unrealized gain on available-for-sale investments | 9 | 0 |
Other comprehensive income | 9 | 0 |
Comprehensive income | $ 6,575 | $ 252 |
Condensed Consolidating Finan65
Condensed Consolidating Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 04, 2018 | Jan. 29, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 6,566 | $ 252 |
Net cash provided by operating activities | 1,685 | 1,353 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (4,786) | 0 |
Proceeds from sales of businesses | 782 | 10 |
Purchases of property, plant and equipment | (220) | (325) |
Proceeds from disposals of property, plant, and equipment | 237 | 0 |
Purchases of investments | (244) | 0 |
Other | 4 | (4) |
Net cash used in investing activities | (4,227) | (319) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 0 | 13,446 |
Repayment of debt | (856) | (13,668) |
Payment of debt issuance costs | 0 | (3) |
Payment of capital lease obligations | (6) | 0 |
Other | (3) | 0 |
Net cash used in financing activities | (1,586) | (595) |
Net change in cash and cash equivalents | (4,128) | 439 |
Cash and cash equivalents at the beginning of period | 11,204 | 3,097 |
Cash and cash equivalents at end of period | 7,076 | 3,536 |
Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | (23,848) | 676 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | 23,848 | (676) |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Intercompany contributions paid | 11,999 | |
Distributions received from subsidiaries | (1,510) | |
Net change in intercompany loans | 4,092 | (8,274) |
Acquisitions of businesses, net of cash acquired | 0 | |
Proceeds from sales of businesses | 0 | 0 |
Purchases of property, plant and equipment | 0 | 0 |
Proceeds from disposals of property, plant, and equipment | 0 | |
Purchases of investments | 0 | |
Other | 0 | 0 |
Net cash used in investing activities | 14,581 | (8,274) |
Cash flows from financing activities: | ||
Intercompany contribution received | (11,999) | |
Distributions paid to unit holders | (1,510) | 0 |
Net intercompany borrowings | (4,092) | 8,274 |
Proceeds from issuance of long-term debt | 0 | |
Repayment of debt | 0 | 0 |
Payment of debt issuance costs | 0 | |
Capital transactions with General Partner | 0 | 0 |
Payment of capital lease obligations | 0 | |
Other | 0 | |
Net cash used in financing activities | (14,581) | 8,274 |
Net change in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at the beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent Guarantor [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | 6,566 | 252 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (6,574) | (225) |
Net cash provided by operating activities | (8) | 27 |
Cash flows from investing activities: | ||
Intercompany contributions paid | 0 | |
Distributions received from subsidiaries | 755 | |
Net change in intercompany loans | 28 | 410 |
Acquisitions of businesses, net of cash acquired | 0 | |
Proceeds from sales of businesses | 0 | 0 |
Purchases of property, plant and equipment | 0 | 0 |
Proceeds from disposals of property, plant, and equipment | 0 | |
Purchases of investments | 0 | |
Other | 0 | 0 |
Net cash used in investing activities | 783 | 410 |
Cash flows from financing activities: | ||
Intercompany contribution received | 0 | |
Distributions paid to unit holders | 755 | 431 |
Net intercompany borrowings | (28) | 30 |
Proceeds from issuance of long-term debt | 0 | |
Repayment of debt | 0 | 0 |
Payment of debt issuance costs | 0 | |
Capital transactions with General Partner | 31 | (29) |
Payment of capital lease obligations | 0 | |
Other | 0 | |
Net cash used in financing activities | (752) | (430) |
Net change in cash and cash equivalents | 23 | 7 |
Cash and cash equivalents at the beginning of period | 7 | 0 |
Cash and cash equivalents at end of period | 30 | 7 |
Subsidiaries Issuers [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | 11,605 | (504) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (11,948) | 279 |
Net cash provided by operating activities | (343) | (225) |
Cash flows from investing activities: | ||
Intercompany contributions paid | (9,099) | |
Distributions received from subsidiaries | 0 | |
Net change in intercompany loans | 93 | 171 |
Acquisitions of businesses, net of cash acquired | 0 | |
Proceeds from sales of businesses | 0 | 0 |
Purchases of property, plant and equipment | (65) | (162) |
Proceeds from disposals of property, plant, and equipment | 2 | |
Purchases of investments | (50) | |
Other | 0 | 0 |
Net cash used in investing activities | (9,119) | 9 |
Cash flows from financing activities: | ||
Intercompany contribution received | 2,900 | |
Distributions paid to unit holders | 755 | 0 |
Net intercompany borrowings | 4,270 | (6,867) |
Proceeds from issuance of long-term debt | 13,446 | |
Repayment of debt | 0 | (5,704) |
Payment of debt issuance costs | (3) | |
Capital transactions with General Partner | 0 | 0 |
Payment of capital lease obligations | 0 | |
Other | 0 | |
Net cash used in financing activities | 6,415 | 872 |
Net change in cash and cash equivalents | (3,047) | 656 |
Cash and cash equivalents at the beginning of period | 7,555 | 1,092 |
Cash and cash equivalents at end of period | 4,508 | 1,748 |
Non-Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | 12,243 | (172) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (10,207) | 1,723 |
Net cash provided by operating activities | 2,036 | 1,551 |
Cash flows from investing activities: | ||
Intercompany contributions paid | (2,900) | |
Distributions received from subsidiaries | 755 | |
Net change in intercompany loans | (4,213) | 7,693 |
Acquisitions of businesses, net of cash acquired | (4,786) | |
Proceeds from sales of businesses | 782 | 10 |
Purchases of property, plant and equipment | (155) | (163) |
Proceeds from disposals of property, plant, and equipment | 235 | |
Purchases of investments | (194) | |
Other | 4 | (4) |
Net cash used in investing activities | (10,472) | 7,536 |
Cash flows from financing activities: | ||
Intercompany contribution received | 9,099 | |
Distributions paid to unit holders | 755 | 0 |
Net intercompany borrowings | (150) | (1,437) |
Proceeds from issuance of long-term debt | 0 | |
Repayment of debt | (856) | (7,964) |
Payment of debt issuance costs | 0 | |
Capital transactions with General Partner | 0 | 0 |
Payment of capital lease obligations | (6) | |
Other | (3) | |
Net cash used in financing activities | 7,329 | (9,401) |
Net change in cash and cash equivalents | (1,107) | (314) |
Cash and cash equivalents at the beginning of period | 3,455 | 1,952 |
Cash and cash equivalents at end of period | 2,348 | 1,638 |
Broadcom Cayman L.P. [Member] | ||
Cash flows from operating activities: | ||
Net income (loss) | 6,566 | 252 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (4,881) | 1,101 |
Net cash provided by operating activities | 1,685 | 1,353 |
Cash flows from investing activities: | ||
Intercompany contributions paid | 0 | |
Distributions received from subsidiaries | 0 | |
Net change in intercompany loans | 0 | 0 |
Acquisitions of businesses, net of cash acquired | (4,786) | 0 |
Proceeds from sales of businesses | 782 | 10 |
Purchases of property, plant and equipment | (220) | (325) |
Proceeds from disposals of property, plant, and equipment | 237 | 0 |
Purchases of investments | (244) | 0 |
Other | 4 | (4) |
Net cash used in investing activities | (4,227) | (319) |
Cash flows from financing activities: | ||
Intercompany contribution received | 0 | |
Distributions paid to unit holders | 755 | 431 |
Net intercompany borrowings | 0 | 0 |
Proceeds from issuance of long-term debt | 0 | 13,446 |
Repayment of debt | (856) | (13,668) |
Payment of debt issuance costs | 0 | (3) |
Capital transactions with General Partner | 31 | (29) |
Payment of capital lease obligations | (6) | 0 |
Other | (3) | 0 |
Net cash used in financing activities | (1,589) | (685) |
Net change in cash and cash equivalents | (4,131) | 349 |
Cash and cash equivalents at the beginning of period | 11,017 | 3,044 |
Cash and cash equivalents at end of period | $ 6,886 | $ 3,393 |