Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
May 06, 2018 | Jun. 01, 2018 | |
Document and Entity Section Information [Abstract] | ||
Entity Registrant Name | Broadcom Inc. | |
Entity Central Index Key | 1,730,168 | |
Current Fiscal Year End Date | --11-04 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | May 6, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 431,680,880 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Millions | May 06, 2018 | Oct. 29, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 8,187 | $ 11,204 |
Trade accounts receivable, net | 2,749 | 2,448 |
Inventory | 1,235 | 1,447 |
Other current assets | 303 | 724 |
Total current assets | 12,474 | 15,823 |
Long-term assets: | ||
Property, plant and equipment, net | 2,720 | 2,599 |
Goodwill | 26,908 | 24,706 |
Intangible assets, net | 12,346 | 10,832 |
Other long-term assets | 488 | 458 |
Total assets | 54,936 | 54,418 |
Current liabilities: | ||
Accounts payable | 836 | 1,105 |
Employee compensation and benefits | 417 | 626 |
Current portion of long-term debt | 117 | 117 |
Other current liabilities | 754 | 681 |
Total current liabilities | 2,124 | 2,529 |
Long-term liabilities: | ||
Long-term debt | 17,481 | 17,431 |
Other long-term liabilities | 3,264 | 11,272 |
Total liabilities | 22,869 | 31,232 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stocks, including additional paid in capital | 24,305 | 20,505 |
Retained earnings (accumulated deficit) | 7,868 | (129) |
Accumulated other comprehensive loss | (106) | (91) |
Total Broadcom Inc. stockholders’ equity | 32,067 | 20,285 |
Noncontrolling interest | 0 | 2,901 |
Total stockholders’ equity | 32,067 | 23,186 |
Total liabilities and stockholders’ equity | $ 54,936 | $ 54,418 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets - Unaudited - (Parenthetical) - $ / shares | May 06, 2018 | Oct. 29, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Preferred Stock, Shares Issued | 0 | 22,145,603 |
Preferred Stock, Shares Outstanding | 0 | 22,145,603 |
Common Stock, Par Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 2,900,000,000 | 2,900,000,000 |
Common Stock, Shares Issued | 436,235,225 | 408,732,155 |
Common Stock, Shares Outstanding | 436,235,225 | 408,732,155 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - Unaudited - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | ||||
Net revenue | $ 5,014 | $ 4,190 | $ 10,341 | $ 8,329 |
Cost of products sold: | ||||
Cost of products sold | 1,696 | 1,564 | 3,595 | 3,137 |
Purchase accounting effect on inventory | 0 | 1 | 70 | 1 |
Amortization of acquisition-related intangible assets | 765 | 639 | 1,480 | 1,198 |
Restructuring charges | 2 | 10 | 17 | 16 |
Total cost of products sold | 2,463 | 2,214 | 5,162 | 4,352 |
Gross margin | 2,551 | 1,976 | 5,179 | 3,977 |
Research and development | 936 | 829 | 1,861 | 1,637 |
Selling, general and administrative | 294 | 204 | 585 | 405 |
Amortization of acquisition-related intangible assets | 67 | 442 | 406 | 882 |
Restructuring, impairment and disposal charges | 53 | 27 | 183 | 73 |
Total operating expenses | 1,350 | 1,502 | 3,035 | 2,997 |
Operating income | 1,201 | 474 | 2,144 | 980 |
Interest expense | (148) | (112) | (331) | (223) |
Loss on extinguishment of debt | 0 | 0 | 0 | (159) |
Other income, net | 46 | 3 | 81 | 34 |
Income from continuing operations before income taxes | 1,099 | 365 | 1,894 | 632 |
Benefit from income taxes | (2,637) | (103) | (8,423) | (93) |
Income from continuing operations | 3,736 | 468 | 10,317 | 725 |
Loss from discontinued operations, net of income taxes | (3) | (4) | (18) | (9) |
Net income | 3,733 | 464 | 10,299 | 716 |
Net income attributable to noncontrolling interest | 15 | 24 | 351 | 37 |
Net income attributable to common stock | $ 3,718 | $ 440 | $ 9,948 | $ 679 |
Basic income (loss) per share: | ||||
Income per share from continuing operations | $ 8.84 | $ 1.10 | $ 24.01 | $ 1.72 |
Loss per share from discontinued operations | (0.01) | (0.01) | (0.04) | (0.03) |
Net income per share | 8.83 | 1.09 | 23.97 | 1.69 |
Diluted income (loss) per share: | ||||
Income per share from continuing operations | 8.34 | 1.06 | 23.03 | 1.65 |
Loss per share from discontinued operations | (0.01) | (0.01) | (0.04) | (0.02) |
Net income per share | $ 8.33 | $ 1.05 | $ 22.99 | $ 1.63 |
Weighted-average shares: | ||||
Basic | 421 | 403 | 415 | 401 |
Diluted | 448 | 442 | 448 | 440 |
Cash dividends declared and paid per share | $ 1.75 | $ 1.02 | $ 3.50 | $ 2.04 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 06, 2018 | Feb. 04, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 3,733 | $ 6,566 | $ 464 | $ 10,299 | $ 716 |
Change in unrealized gain on available-for-sale investments | (9) | 0 | 0 | 0 | |
Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | 1 | 1 | 1 | 1 | |
Other comprehensive income (loss) | (8) | $ 9 | 1 | 1 | 1 |
Comprehensive income | 3,725 | 465 | 10,300 | 717 | |
Comprehensive income attributable to noncontrolling interest | 15 | 24 | 351 | 37 | |
Comprehensive income attributable to common stock | $ 3,710 | $ 441 | $ 9,949 | $ 680 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Millions | 6 Months Ended | |
May 06, 2018 | Apr. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 10,299 | $ 716 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,148 | 2,307 |
Stock-based compensation | 595 | 418 |
Deferred taxes and other non-cash taxes | (8,534) | (111) |
Non-cash portion of debt extinguishment loss | 0 | 159 |
Non-cash restructuring, impairment and disposal charges | 10 | 40 |
Amortization of debt issuance costs and accretion of debt discount | 12 | 14 |
Other | 17 | (15) |
Changes in assets and liabilities, net of acquisitions and disposals: | ||
Trade accounts receivable, net | (78) | 108 |
Inventory | 306 | 96 |
Accounts payable | (312) | (251) |
Employee compensation and benefits | (292) | (53) |
Contributions to defined benefit pension plans | (129) | (11) |
Other current assets and current liabilities | 354 | (391) |
Other long-term assets and long-term liabilities | (398) | (90) |
Net cash provided by operating activities | 3,998 | 2,936 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (4,786) | (37) |
Proceeds from sales of businesses | 782 | 10 |
Purchases of property, plant and equipment | (409) | (581) |
Proceeds from disposals of property, plant, and equipment | 238 | 0 |
Purchases of investments | (249) | (200) |
Proceeds from sale of investment | 54 | 0 |
Other | (12) | (4) |
Net cash used in investing activities | (4,382) | (812) |
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 | (23) |
Dividend and distribution payments | (1,521) | (868) |
Repurchases of common stock | (347) | 0 |
Issuance of common stock, net | 112 | 150 |
Payment of capital lease obligations | (21) | (4) |
Net cash used in financing activities | (2,633) | (967) |
Net change in cash and cash equivalents | (3,017) | 1,157 |
Cash and cash equivalents at beginning of period | 11,204 | 3,097 |
Cash and cash equivalents at end of period | $ 8,187 | $ 4,254 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Stockholders' Equity Statement - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock [Member] | Common Stock Including Additional Paid in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] |
Beginning Balance at Oct. 29, 2017 | $ 23,186 | $ 0 | $ 20,505 | $ (129) | $ (91) | $ 2,901 |
Shares, Outstanding, Beginning Balance at Oct. 29, 2017 | 22 | 409 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,566 | 6,230 | 336 | |||
Other comprehensive income | 9 | 9 | ||||
Cash dividends declared and paid to common stockholders | (717) | (717) | ||||
Cash distribution declared and paid by Broadcom Cayman L.P. on exchangeable limited partnership units | (38) | (38) | ||||
Exchange of exchangeable limited partnership units for common stock | $ 5 | |||||
Exchange of exchangeable limited partnership units | (5) | |||||
Issuance of common stock in connection with equity incentive plans (shares) | 1 | |||||
Issuance of common stock in connection with equity incentive plans | 34 | $ 34 | ||||
Stock-based compensation | 299 | 299 | ||||
Fair value of partially vested equity awards assumed with the acquisition | 8 | 8 | ||||
Ending Balance at Feb. 04, 2018 | 29,081 | $ 0 | $ 20,851 | 5,132 | (82) | 3,180 |
Shares, Outstanding, Ending Balance at Feb. 04, 2018 | 22 | 410 | ||||
Beginning Balance at Oct. 29, 2017 | 23,186 | $ 0 | $ 20,505 | (129) | (91) | 2,901 |
Shares, Outstanding, Beginning Balance at Oct. 29, 2017 | 22 | 409 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,299 | |||||
Other comprehensive income | $ 1 | |||||
Exchange of exchangeable limited partnership units for common stock (shares) | 22 | |||||
Ending Balance at May. 06, 2018 | $ 32,067 | $ 0 | $ 24,305 | 7,868 | (106) | 0 |
Shares, Outstanding, Ending Balance at May. 06, 2018 | 0 | 436 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting change | (266) | (252) | (14) | |||
Beginning Balance at Feb. 04, 2018 | 29,081 | $ 0 | $ 20,851 | 5,132 | (82) | 3,180 |
Shares, Outstanding, Beginning Balance at Feb. 04, 2018 | 22 | 410 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 3,733 | 3,718 | 15 | |||
Other comprehensive income | (8) | (8) | ||||
Cash dividends declared and paid to common stockholders | (727) | (727) | ||||
Cash distribution declared and paid by Broadcom Cayman L.P. on exchangeable limited partnership units | (39) | (39) | ||||
Redemption of preferred stock (shares) | (22) | |||||
Exchange of exchangeable limited partnership units for common stock (shares) | 22 | |||||
Exchange of exchangeable limited partnership units for common stock | $ 3,157 | |||||
Exchange of exchangeable limited partnership units | (3,157) | |||||
Issuance of common stock in connection with equity incentive plans (shares) | 6 | |||||
Issuance of common stock in connection with equity incentive plans | 78 | $ 78 | ||||
Stock-based compensation | 296 | $ 296 | ||||
Repurchases of common stock (shares) | (2) | |||||
Repurchases of common stock | (347) | $ (77) | (270) | |||
Ending Balance at May. 06, 2018 | $ 32,067 | $ 0 | $ 24,305 | 7,868 | (106) | 0 |
Shares, Outstanding, Ending Balance at May. 06, 2018 | 0 | 436 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of accounting change | $ 15 | $ (16) | $ 1 |
Overview, Basis of Presentation
Overview, Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
May 06, 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 Inc., a Delaware corporation, is the successor to Broadcom Limited, a company organized under the laws of the Republic of Singapore, or Broadcom-Singapore. As part of the plan to cause the publicly traded parent company of Broadcom to be a Delaware corporation, or the Redomiciliation Transaction, after the close of market trading on April 4, 2018, Broadcom Inc. and Broadcom-Singapore completed a statutory scheme of arrangement under Singapore law, or the Scheme of Arrangement. Pursuant to the Scheme of Arrangement, all Broadcom-Singapore ordinary shares outstanding immediately prior to the effective time of the Scheme of Arrangement were exchanged on a one -for-one basis for newly issued shares of Broadcom Inc. common stock and Broadcom-Singapore became an indirect wholly-owned subsidiary of Broadcom Inc. In conjunction with the Redomiciliation Transaction and pursuant to an amendment to the Amended and Restated Limited Partnership Agreement of Broadcom Cayman L.P., or the Partnership, all outstanding exchangeable limited partnership units, or LP Units, were mandatorily exchanged, or the Mandatory Exchange, on a one -for-one basis for newly issued shares of Broadcom Inc. common stock immediately prior to the effective time of the Scheme of Arrangement. As a result, all limited partners of the Partnership became common stockholders of Broadcom Inc. In addition, all related outstanding special preference shares of Broadcom-Singapore were automatically redeemed pursuant to Broadcom-Singapore’s governing documents upon the Mandatory Exchange of the LP Units. Consequently, the limited partners no longer hold a noncontrolling interest in the Partnership and we subsequently deregistered the Partnership. The Scheme of Arrangement was accounted for as an exchange of equity interests among entities under common control. All assets and liabilities of Broadcom-Singapore were assumed by Broadcom Inc., resulting in the retention of the historical basis of accounting as if they had always been combined for accounting and financial reporting purposes. The financial statements for periods prior to April 4, 2018, the effective date of the Redomiciliation Transaction, relate to Broadcom-Singapore and relate to Broadcom Inc. for the period after April 4, 2018. Unless stated otherwise or the context otherwise requires, references to “Broadcom,” “we,” “our” and “us” mean Broadcom Inc. and its consolidated subsidiaries from and after the effective time of the Redomiciliation Transaction and, prior to that time, to our predecessor, Broadcom-Singapore. We are 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. 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 ended 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 . “ Acquisition of Brocade ” for additional information. The accompanying condensed consolidated financial statements include the accounts of Broadcom and our 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-Singapore’s audited consolidated financial statements included in its Annual Report on Form 10-K for fiscal year 2017 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. The operating results for the fiscal quarter and two fiscal quarters ended May 6, 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 guidance 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 noncontrolling interest. In the second quarter of fiscal year 2018, we early adopted guidance issued by the FASB in February 2018 that allows companies to reclassify stranded income tax effects resulting from the U.S. Tax Cuts and Jobs Act, or the 2017 Tax Reform Act, from accumulated other comprehensive loss to retained earnings. The stranded income tax effects resulted from the change in the federal tax rate for deferred taxes recorded in accumulated other comprehensive loss. The adoption of this guidance resulted in a cumulative-effect adjustment as of the beginning of the second quarter of fiscal year 2018, which consisted of an increase to our accumulated other comprehensive loss of $16 million , an increase to retained earnings of $15 million and a $1 million increase to noncontrolling 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 on a retrospective basis; and early adoption is permitted. We do not intend to adopt this guidance early and will present our statements of cash flows in accordance with this guidance upon 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 | 6 Months Ended |
May 06, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 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 our 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 $ 1,294 Goodwill 2,189 Intangible assets 3,396 Other long-term assets 79 Total assets acquired 6,958 Current portion of long-term debt (856 ) Other current liabilities (370 ) Long-term debt (38 ) Other long-term liabilities (906 ) Total liabilities assumed (2,170 ) Fair value of net assets acquired $ 4,788 Goodwill was 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, for no gain or loss. We leased back a portion of the campus at market rental rates for six months. Revenue from the Brocade acquisition has been included primarily in our enterprise storage segment. Transaction costs of $8 million and $29 million related to the Brocade Merger were included in selling, general and administrative expense for the fiscal quarter and two fiscal quarters ended May 6, 2018 , respectively. 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: Description IPR&D Percentage of Completion Estimated Cost to Complete Expected Release Date (By Fiscal Year) (Dollars in millions) Directors $ 64 72 % $ 45 2019 Switches $ 50 81 % $ 21 2018 Embedded $ 31 74 % $ 22 2019 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 stock-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 $76 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 Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Pro forma net revenue $ 5,017 $ 4,662 $ 10,464 $ 9,301 Pro forma net income attributable to common stock $ 3,744 $ 442 $ 10,077 $ 554 |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
May 06, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Cash Equivalents Cash equivalents included $4,362 million and $6,002 million of time deposits as of May 6, 2018 and October 29, 2017 , respectively. As of May 6, 2018 and October 29, 2017 , cash equivalents also included $402 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. Accounts Receivable Factoring In connection with a factoring agreement with a third-party financial institution, we sell certain of our trade accounts receivable on a non-recourse basis. We account for these transactions as sales of receivables and present cash proceeds as cash provided by operating activities in the condensed consolidated statements of cash flows. Total trade accounts receivable sold under the factoring agreement were $57 million during the fiscal quarter and two fiscal quarters ended May 6, 2018 . Factoring fees for the sales of receivables were recorded in other income, net and were not material. Inventory May 6, October 29, (In millions) Finished goods $ 510 $ 562 Work-in-process 542 696 Raw materials 183 189 Total inventory $ 1,235 $ 1,447 Other current assets May 6, October 29, (In millions) Prepaid expenses $ 174 $ 440 Other receivables 87 155 Other 42 129 Total other current assets $ 303 $ 724 Accrued Rebate Activity Two Fiscal Quarters Ended May 6, April 30, (In millions) Beginning balance $ 124 $ 317 Charged as a reduction of revenue 64 120 Reversal of unclaimed rebates (10 ) (36 ) Payments (125 ) (222 ) Ending balance $ 53 $ 179 We recorded customer rebate charges of $25 million and $56 million in the fiscal quarters ended May 6, 2018 and April 30, 2017, respectively. Other Long-Term Liabilities May 6, October 29, (In millions) Deferred tax liabilities (a) $ 266 $ 10,019 Unrecognized tax benefits (a) (b) 2,700 1,011 Other 298 242 Total other long-term liabilities $ 3,264 $ 11,272 ________________________________ (a) Refer to Note 8 . “ 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 provided 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 Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Net revenue $ — $ 3 $ 18 $ 5 Loss from discontinued operations $ (3 ) $ (4 ) $ (18 ) $ (9 ) Supplemental Cash Flow Information Fiscal Quarter Ended Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Cash paid for interest $ 1 $ 1 $ 233 $ 103 Cash paid for income taxes $ 87 $ 121 $ 196 $ 218 At May 6, 2018 and October 29, 2017 , we had $27 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 | 6 Months Ended |
May 06, 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 — 2,119 — 2,189 Other acquisition 13 — — — 13 Balance as of May 6, 2018 $ 17,705 $ 5,945 $ 3,114 $ 144 $ 26,908 During the two fiscal quarters ended May 6, 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 May 6, 2018: Purchased technology $ 15,770 $ (5,295 ) $ 10,475 Customer contracts and related relationships 1,792 (770 ) 1,022 Trade names 578 (143 ) 435 Other 151 (37 ) 114 Intangible assets subject to amortization 18,291 (6,245 ) 12,046 IPR&D 300 — 300 Total $ 18,591 $ (6,245 ) $ 12,346 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 May 6, 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) $ 1,669 2019 2,872 2020 2,424 2021 1,930 2022 1,425 Thereafter 1,726 Total $ 12,046 The weighted-average amortization periods remaining by intangible asset category were as follows: Amortizable intangible assets: May 6, (In years) Purchased technology 6 Customer contracts and related relationships 6 Trade names 12 Other 9 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
May 06, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Net Income Per Share Basic net income per share is computed by dividing net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Diluted shares include the dilutive effect of in-the-money stock options, RSUs and employee stock purchase plan rights under the Broadcom Limited Second Amended and Restated Employee Share Purchase Plan, as amended, or ESPP (together referred to as equity awards). Diluted shares also included shares issuable upon exchange of the LP Units for the periods presented prior to the effective time of Mandatory Exchange (refer to Note 7 . “ Stockholders’ Equity ” for additional information). The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and 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 shares. The dilutive effect of the LP Units was calculated using the if-converted method. The if-converted method assumed that the LP Units were converted at the beginning of the reporting period and included net income attributable to noncontrolling interest for the period. 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 Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, Numerator - Basic: (In millions, except per share data) Income from continuing operations $ 3,736 $ 468 $ 10,317 $ 725 Less: Income from continuing operations attributable to noncontrolling interest 15 24 352 37 Income from continuing operations attributable to common stock 3,721 444 9,965 688 Loss from discontinued operations, net of income taxes (3 ) (4 ) (18 ) (9 ) Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest — — (1 ) — Loss from discontinued operations, net of income taxes, attributable to common stock (3 ) (4 ) (17 ) (9 ) Net income attributable to common stock $ 3,718 $ 440 $ 9,948 $ 679 Numerator - Diluted: Income from continuing operations $ 3,736 $ 468 $ 10,317 $ 725 Loss from discontinued operations, net of income taxes (3 ) (4 ) (18 ) (9 ) Net income $ 3,733 $ 464 $ 10,299 $ 716 Denominator: Weighted-average shares outstanding - basic 421 403 415 401 Dilutive effect of equity awards 13 16 15 16 Exchange of noncontrolling interest 14 23 18 23 Weighted-average shares outstanding - diluted 448 442 448 440 Basic income (loss) per share: Income per share from continuing operations $ 8.84 $ 1.10 $ 24.01 $ 1.72 Loss per share from discontinued operations (0.01 ) (0.01 ) (0.04 ) (0.03 ) Net income per share $ 8.83 $ 1.09 $ 23.97 $ 1.69 Diluted income (loss) per share: Income per share from continuing operations $ 8.34 $ 1.06 $ 23.03 $ 1.65 Loss per share from discontinued operations (0.01 ) (0.01 ) (0.04 ) (0.02 ) Net income per share $ 8.33 $ 1.05 $ 22.99 $ 1.63 |
Borrowings
Borrowings | 6 Months Ended |
May 06, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings As of May 6, 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 BRCM 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 Assumed 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 (129 ) (141 ) Total carrying value of debt $ 17,598 $ 17,548 Senior Notes and Assumed BRCM Senior Notes In fiscal year 2017, Broadcom Corporation, or BRCM, and Broadcom Cayman Finance Limited, or together with BRCM referred to as the Subsidiary Issuers, 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 were fully and unconditionally guaranteed, jointly and severally, on an unsecured, unsubordinated basis by Broadcom-Singapore and the Partnership, subject to certain release conditions described in the indentures governing the 2017 Senior Notes, or the 2017 Indentures. On April 9, 2018, Broadcom Inc., or Parent Guarantor, became a guarantor of the 2017 Senior Notes and entered into supplemental indentures with the Subsidiary Issuers and the trustee of the 2017 Senior Notes. At that time, Broadcom-Singapore, a guarantor at the issuance of the 2017 Senior Notes, became an indirect wholly-owned subsidiary of Broadcom Inc. and a subsidiary guarantor, or Subsidiary Guarantor. In addition, the Partnership was released from its guarantee of the 2017 Senior Notes under each of the 2017 Indentures in accordance with their terms. Each series of 2017 Senior Notes pays interest semi-annually in cash in arrears on January 15 and July 15 of each year. As of May 6, 2018 and October 29, 2017 , we accrued interest payable of $194 million and $136 million , respectively. 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 our subsidiaries to incur certain secured debt and consummate certain sale and leaseback transactions, and the ability of the Parent Guarantor, the Subsidiary Issuers and the Subsidiary Guarantor 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 BRCM Senior Notes, as of May 6, 2018 . Assumed 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 Assumed 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 Assumed Brocade Convertible Notes. Accordingly, the holders of the Assumed 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 May 6, 2018 , the outstanding principal amount of the Assumed Brocade Convertible Notes was $38 million . The remaining outstanding Assumed 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 Assumed Brocade Convertible Notes as of May 6, 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 May 6, 2018 , the estimated aggregate fair value of the 2017 Senior Notes, the Assumed BRCM Senior Notes and the Assumed Brocade Convertible Notes was $17,024 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 BRCM Senior Notes and Assumed Brocade Convertible Notes as of May 6, 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 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
May 06, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Completion of the Redomiciliation Transaction For the period prior to the Redomiciliation Transaction, our stockholders’ equity reflects Broadcom-Singapore’s outstanding ordinary shares, all of which were publicly traded on the NASDAQ Global Select Market. After the close of market trading on April 4, 2018, pursuant to the Scheme of Arrangement, all Broadcom-Singapore ordinary shares outstanding immediately prior to the effective time of Scheme of Arrangement were exchanged on a one -for-one basis for newly issued shares of Broadcom Inc. common stock and Broadcom-Singapore became an indirect wholly-owned subsidiary of Broadcom Inc. In conjunction with the Redomiciliation Transaction and pursuant to the Mandatory Exchange, immediately prior to the effective time of the Scheme of Arrangement all outstanding LP Units held by the limited partners were mandatorily exchanged for approximately 22 million newly issued shares of Broadcom Inc. common stock on a one -for-one basis. As a result, all limited partners of the Partnership have become common stockholders of Broadcom Inc. In addition, all related outstanding special preference shares of Broadcom-Singapore were automatically redeemed pursuant to Broadcom-Singapore’s governing documents upon the Mandatory Exchange. Noncontrolling Interest As of October 29, 2017 and immediately prior to the effective time of the Scheme of Arrangement, the limited partners held a noncontrolling interest of approximately 5% in the Partnership through their ownership of LP Units. Accordingly, net income attributable to our common stock in our condensed consolidated statements of operations excludes the noncontrolling interest’s proportionate share of the results for the periods presented. In addition, we presented the proportionate share of equity attributable to the noncontrolling interest as a separate component of stockholders’ equity within our condensed consolidated balance sheet as of October 29, 2017 and condensed consolidated statements of stockholders’ equity for the periods immediately prior to the effective time of the Scheme of Arrangement. Dividends and Distributions Fiscal Quarter Ended Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions, except per share data) Cash dividends and distributions paid per share/unit $ 1.75 $ 1.02 $ 3.50 $ 2.04 Cash dividends paid to stockholders $ 727 $ 414 $ 1,444 $ 822 Cash distributions paid to limited partners $ 39 $ 23 $ 77 $ 46 Stock Repurchase Program In April 2018, our Board of Directors authorized the repurchase of up to $12 billion of our common stock from time to time on or prior to November 3, 2019 , the end of our fiscal year 2019. Under our stock repurchase program, we repurchased and retired approximately 1.5 million shares of our common stock at a weighted average price of $230.50 in the fiscal quarter ended May 6, 2018 . As of May 6, 2018, $11,653 million of the current authorization remained available under our stock repurchase program. Repurchases under our stock repurchase program may be effected through a variety of methods, including open market or privately negotiated purchases. The timing and number of shares of common stock repurchased will depend on a variety of factors, including price, general business and market conditions and alternative investment opportunities. We are not obligated to repurchase any specific number of shares of common stock, and we may suspend or discontinue our repurchase program at any time. Stock-Based Compensation Expense Fiscal Quarter Ended Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Cost of products sold $ 21 $ 15 $ 41 $ 29 Research and development 205 150 408 291 Selling, general and administrative 70 51 146 97 Total stock-based compensation expense $ 296 $ 216 $ 595 $ 417 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 7 $ 240.87 Vested (5 ) $ 155.45 Forfeited (1 ) $ 161.95 Balance as of May 6, 2018 19 $ 194.00 The aggregate fair value of time- and market-based RSUs that vested during the two fiscal quarters ended May 6, 2018 was $1,355 million , which represents the market value of our common stock on the date that the RSUs vested. The number of RSUs vested included shares of common stock that we withheld for settlement of employees’ withholding obligations due upon the vesting of RSUs. Total unrecognized compensation cost related to unvested RSUs as of May 6, 2018 was $3,048 million , which is expected to be recognized over the remaining weighted-average service period of 3.1 years. A summary of time- and market-based stock 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 (1 ) $ 45.76 $ 318 Cancelled — * $ 74.66 Balance as of May 6, 2018 9 $ 50.08 2.41 $ 1,593 Fully vested as of May 6, 2018 8 $ 48.96 2.38 $ 1,543 Fully vested and expected to vest as of May 6, 2018 9 $ 50.08 2.41 $ 1,593 ________________________________ * Represents fewer than 0.5 million shares. The total unrecognized compensation cost related to unvested stock options as of May 6, 2018 was $3 million , which is expected to be recognized over the remaining weighted-average service period of 0.5 years. |
Income Taxes
Income Taxes | 6 Months Ended |
May 06, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the fiscal quarter and two fiscal quarters ended May 6, 2018 , our benefit from income taxes was $2,637 million and $8,423 million , respectively, compared to $103 million and $93 million for the fiscal quarter and two fiscal quarters ended April 30, 2017 , respectively. The benefit for the fiscal quarter ended May 6, 2018 included the impact from the April 4, 2018 completion of the Redomiciliation Transaction and related internal reorganizations. The impact included tax benefits from the reduction of $1,063 million in unrecognized federal tax benefits related to a one-time transition tax, or the Transition Tax, $431 million in the Transition Tax payable and $1,162 million from the remeasurement of withholding taxes on undistributed earnings, partially offset by a $91 million tax provision on foreign earnings and profit subject to U.S. tax. The benefit from income taxes in the two fiscal quarters ended May 6, 2018 was principally a result of provisional income tax benefits realized from the enactment of the 2017 Tax Reform Act on December 22, 2017 and included 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 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 interpretation of the 2017 Tax Reform Act and available guidance, including SAB 118, we recorded a total provisional benefit of $7,303 million , which we believe was a reasonable estimate as of May 6, 2018 . The provisional benefit includes $92 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 $7,212 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 $2,116 million of federal provisional long-term Transition Tax payable and $1,116 million of unrecognized federal tax benefits related to the Transition Tax. The provisional benefit includes a $1,494 million reduction of the Transition Tax in the fiscal quarter ended May 6, 2018 primarily as a result of the completion of the Redomiciliation Transaction and related internal reorganizations. Additional detailed analysis of historical foreign earnings, as well as potential correlative adjustments is ongoing. 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 a discrete 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. We also recognized discrete benefits from the recognition of $127 million and $155 million of excess tax benefits from stock-based awards that were vested and/or exercised during the fiscal quarter and two fiscal quarters ended May 6, 2018, respectively. The benefit from income taxes in the corresponding 2017 fiscal periods was primarily due to a discrete benefit from the recognition of $139 million and $181 million of excess tax benefits from stock-based awards that were vested and/or exercised during the fiscal quarter and two fiscal quarters ended April 30, 2017 , respectively. Uncertain Tax Positions The balance of gross unrecognized tax benefits was $3,430 million and $2,256 million as of May 6, 2018 and October 29, 2017 , respectively. Gross unrecognized tax benefits increased by $1,174 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 May 6, 2018 and October 29, 2017 , the combined amount of cumulative accrued interest and penalties was approximately $155 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 May 6, 2018 and October 29, 2017 , approximately $3,586 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 U.S. income tax examination for fiscal years 2010 and later. Certain of our acquired companies are subject to tax examinations in major jurisdictions outside the United States for fiscal years 2013 and later. It is possible that our existing unrecognized tax benefits may change by up to $257 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 | 6 Months Ended |
May 06, 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 . “ Acquisition of Brocade " 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, stock-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 Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Net revenue: Wired infrastructure $ 2,295 $ 2,111 $ 4,170 $ 4,195 Wireless communications 1,294 1,150 3,504 2,325 Enterprise storage 1,162 712 2,153 1,419 Industrial & other 263 217 514 390 Total net revenue $ 5,014 $ 4,190 $ 10,341 $ 8,329 Operating income: Wired infrastructure $ 1,058 $ 937 $ 1,845 $ 1,870 Wireless communications 522 414 1,581 841 Enterprise storage 720 382 1,299 757 Industrial & other 152 109 294 170 Unallocated expenses (1,251 ) (1,368 ) (2,875 ) (2,658 ) Total operating income $ 1,201 $ 474 $ 2,144 $ 980 Significant Customer Information We sell our products through our direct sales force and a select network of distributors globally. One direct customer accounted for 13% and 17% of our net accounts receivable balance at May 6, 2018 and October 29, 2017 , respectively. During the two fiscal quarters ended May 6, 2018 , one direct customer represented 12% of our net revenue. No customer accounted for 10% or more of our net revenue for the fiscal quarter ended May 6, 2018 . During the fiscal quarter and two fiscal quarters ended April 30, 2017 , one direct customer represented 13% and 14% 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 | 6 Months Ended |
May 06, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the fiscal quarter and two fiscal quarters ended May 6, 2018 and April 30, 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 Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Total net revenue $ 200 $ 71 $ 382 $ 148 Total costs and expenses, including inventory purchases $ 31 $ 46 $ 67 $ 65 May 6, October 29, (In millions) Total receivables $ 76 $ 31 Total payables $ 8 $ 12 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
May 06, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The following table summarizes contractual obligations and commitments as of May 6, 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 $ 21,371 $ 430 $ 566 $ 3,321 $ 1,242 $ 3,940 $ 11,872 Purchase commitments $ 931 $ 843 $ 69 $ 18 $ 1 $ — $ — Debt Principal, Interest and Fees. Represents principal and interest on borrowings under the 2017 Senior Notes, the Assumed BRCM Senior Notes, and the Assumed 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 May 6, 2018 , we are unable to reliably estimate the timing of cash settlement with the respective taxing authorities. Therefore, $2,700 million of unrecognized tax benefits and accrued interest classified within other long-term liabilities on our condensed consolidated balance sheet as of May 6, 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 named as defendants Brocade, the members of Brocade’s board of directors, Broadcom, BRCM and Bobcat Merger Sub, Inc. The Gross, Jha and Chuakay complaints named as defendants Brocade and the members of Brocade’s board of directors. All of the complaints asserted claims under Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder. The complaints alleged, 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 sought 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 were then 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, the defendants filed a joint opposition to the motion for attorneys’ fees. On May 3, 2018, Plaintiffs Gross, Chuakay and Jha withdrew their motion for an award of attorneys’ fees. As of May 6, 2018, all actions have been dismissed and motions withdrawn, thereby concluding all actions with respect to these lawsuits. 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 alleged 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, were 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, thereby concluding all actions with respect to these matters. 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 alleges, 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. On April 20, 2018, the Ninth Circuit Court issued an opinion affirming in part and reversing in part the decision of the U.S. Central District Court and remanding Plaintiff-Appellant’s claims under Sections 14(e) and 20(a) of the Exchange Act to the U.S. Central District Court for reconsideration. On May 4, 2018, the Defendants-Appellees filed a Petition for Rehearing En Banc with the Ninth Circuit Court. 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. 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. A bench trial was held in the Delaware class action on April 10, 2018 and a decision is expected later this year. 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 | 6 Months Ended |
May 06, 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 first quarter of fiscal year 2018, we began the implementation of cost reduction activities associated with the Brocade Merger. In connection with the Brocade Merger, we recognized $35 million and $143 million of restructuring costs primarily related to employee termination costs during the fiscal quarter and two fiscal quarters ended May 6, 2018, respectively. Approximately 1,100 employees have been terminated from our workforce across all business and functional areas on a global basis as a result of the Brocade Merger. Management is in the process of further evaluating our resources and business needs and may eliminate additional positions, which would result in additional restructuring costs. • 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 were $14 million and $45 million for the fiscal quarter and two fiscal quarters ended May 6, 2018 , respectively, and $22 million and $64 million for the fiscal quarter and two fiscal quarters ended April 30, 2017 , respectively. Restructuring costs were primarily related to lease and other exit costs for the fiscal quarter and two fiscal quarters ended May 6, 2018 and employee termination costs for the fiscal quarter and two fiscal quarters ended April 30, 2017 . Employee Termination Costs Leases and Other Exit Costs Total (In millions) Balance as of October 29, 2017 $ 28 $ 17 $ 45 Restructuring charges (a) 129 61 190 Utilization (121 ) (55 ) (176 ) Balance as of May 6, 2018 (b) $ 36 $ 23 $ 59 _________________________________ (a) Included $2 million of restructuring expense related to discontinued operations recognized during the two fiscal quarters ended May 6, 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 in the third quarter of fiscal year 2018 . The leases and other exit costs balance is expected to be paid during the remaining terms of the leases, which extend through fiscal year 2025 . Impairment and Disposal Charges During the fiscal quarter and two fiscal quarters ended May 6, 2018 , we recorded impairment and disposal charges of $6 million and $12 million , respectively. These charges primarily related to impairments of leasehold improvements. During the fiscal quarter and two fiscal quarters ended April 30, 2017 , we recorded impairment and disposal charges of $15 million and $25 million , respectively. These charges included impairment of property, plant and equipment acquired through the Broadcom Merger and IPR&D projects. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
May 06, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information In connection with the Exchange Offer, we are required to provide certain financial information regarding the Parent Guarantor, the Subsidiary Guarantor, the Subsidiary Issuers and our other subsidiaries, collectively, the Non-Guarantor Subsidiaries. The following information sets forth the condensed consolidating financial information as of May 6, 2018 and October 29, 2017 and for the fiscal quarter and two fiscal quarters ended May 6, 2018 and April 30, 2017 for the Parent Guarantor, the Subsidiary Guarantor, the Subsidiary Issuers, and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for under the equity method; accordingly, entries necessary to consolidate the Parent Guarantor, the Subsidiary Guarantor, the Subsidiary Issuers and the 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. See Note 6 . “ Borrowings ” for more information regarding the 2017 Senior Notes and changes in guarantors resulting from the Redomiciliation Transaction. We have applied the impacts from the Redomiciliation Transaction and the change in guarantors retrospectively to all periods presented. Condensed Consolidating Balance Sheet May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 495 $ 5,913 $ 1,779 $ — $ 8,187 Trade accounts receivable, net — — — 2,749 — 2,749 Inventory — — — 1,235 — 1,235 Intercompany receivable 10 6 1,693 1,393 (3,102 ) — Intercompany loan receivable — — 1,320 2,554 (3,874 ) — Other current assets — — 37 266 — 303 Total current assets 10 501 8,963 9,976 (6,976 ) 12,474 Long-term assets: Property, plant and equipment, net — — 241 2,479 — 2,720 Goodwill — — 1,360 25,548 — 26,908 Intangible assets, net — — — 12,346 — 12,346 Investment in subsidiaries 32,405 32,413 35,187 96,595 (196,600 ) — Intercompany loan receivable, long-term — — 43,565 937 (44,502 ) — Other long-term assets — — 27 461 — 488 Total assets $ 32,415 $ 32,914 $ 89,343 $ 148,342 $ (248,078 ) $ 54,936 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 2 $ 22 $ 38 $ 774 $ — $ 836 Employee compensation and benefits — — 137 280 — 417 Current portion of long-term debt — — 117 — — 117 Intercompany payable 346 463 1,158 1,135 (3,102 ) — Intercompany loan payable — — 2,554 1,320 (3,874 ) — Other current liabilities — — 677 77 — 754 Total current liabilities 348 485 4,681 3,586 (6,976 ) 2,124 Long-term liabilities: Long-term debt — — 17,444 37 — 17,481 Deferred tax liabilities — — 5 261 — 266 Intercompany loan payable, long-term — 21 915 43,566 (44,502 ) — Unrecognized tax benefits — — 1,941 759 — 2,700 Other long-term liabilities — — 163 135 — 298 Total liabilities 348 506 25,149 48,344 (51,478 ) 22,869 Total stockholders’ equity 32,067 32,408 64,194 99,998 (196,600 ) 32,067 Total liabilities and stockholders' equity $ 32,415 $ 32,914 $ 89,343 $ 148,342 $ (248,078 ) $ 54,936 Condensed Consolidating Balance Sheet October 29, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 194 $ 7,555 $ 3,455 $ — $ 11,204 Trade accounts receivable, net — — — 2,448 — 2,448 Inventory — — — 1,447 — 1,447 Intercompany receivable — 32 279 309 (620 ) — Intercompany loan receivable — 28 1,891 8,849 (10,768 ) — Other current assets — — 350 374 — 724 Total current assets — 254 10,075 16,882 (11,388 ) 15,823 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 20,285 23,112 28,049 63,739 (135,185 ) — Intercompany loan receivable, long-term — — 41,547 — (41,547 ) — Other long-term assets — — 213 245 — 458 Total assets $ 20,285 $ 23,366 $ 81,451 $ 117,436 $ (188,120 ) $ 54,418 LIABILITIES AND STOCKHOLDERS’ 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 — 123 186 311 (620 ) — Intercompany loan payable — 50 8,799 1,919 (10,768 ) — Other current liabilities — — 254 427 — 681 Total current liabilities — 180 9,702 4,035 (11,388 ) 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 — 180 37,999 45,988 (52,935 ) 31,232 Total stockholders’ equity 20,285 20,285 43,452 71,448 (135,185 ) 20,285 Noncontrolling interest — 2,901 — — — 2,901 Total liabilities and stockholders' equity $ 20,285 $ 23,366 $ 81,451 $ 117,436 $ (188,120 ) $ 54,418 Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ — $ 5,014 $ — $ 5,014 Intercompany revenue — — 566 — (566 ) — Total revenue — — 566 5,014 (566 ) 5,014 Cost of products sold: Cost of products sold — — 35 1,661 — 1,696 Intercompany cost of products sold — — — 37 (37 ) — Amortization of acquisition-related intangible assets — — — 765 — 765 Restructuring charges — — — 2 — 2 Total cost of products sold — — 35 2,465 (37 ) 2,463 Gross margin — — 531 2,549 (529 ) 2,551 Research and development — — 407 529 — 936 Intercompany operating expense — — — 529 (529 ) — Selling, general and administrative 2 50 72 170 — 294 Amortization of acquisition-related intangible assets — — — 67 — 67 Restructuring, impairment and disposal charges — — 11 42 — 53 Total operating expenses 2 50 490 1,337 (529 ) 1,350 Operating income (loss) (2 ) (50 ) 41 1,212 — 1,201 Interest expense — — (148 ) — — (148 ) Intercompany interest expense — — (81 ) (519 ) 600 — Other income, net — 1 28 17 — 46 Intercompany interest income — — 519 81 (600 ) — Intercompany other income (expense), net — 50 — (50 ) — — Income (loss) from continuing operations before income taxes and earnings in subsidiaries (2 ) 1 359 741 — 1,099 Benefit from income taxes — — (2,521 ) (116 ) — (2,637 ) Income (loss) from continuing operations before earnings in subsidiaries (2 ) 1 2,880 857 — 3,736 Earnings in subsidiaries 3,720 3,734 3,680 10,278 (21,412 ) — Income from continuing operations and earnings in subsidiaries 3,718 3,735 6,560 11,135 (21,412 ) 3,736 Loss from discontinued operations, net of income taxes — — (2 ) (1 ) — (3 ) Net income 3,718 3,735 6,558 11,134 (21,412 ) 3,733 Net income attributable to noncontrolling interest — 15 — — — 15 Net income attributable to common stock $ 3,718 $ 3,720 $ 6,558 $ 11,134 $ (21,412 ) $ 3,718 Net income $ 3,718 $ 3,735 $ 6,558 $ 11,134 $ (21,412 ) $ 3,733 Other comprehensive income (loss), net of tax: Change in unrealized gain on available-for-sale investments — — (9 ) — — (9 ) Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income (loss) — — (9 ) 1 — (8 ) Comprehensive income 3,718 3,735 6,549 11,135 (21,412 ) 3,725 Comprehensive income attributable to noncontrolling interest — 15 — — — 15 Comprehensive income attributable to common stock $ 3,718 $ 3,720 $ 6,549 $ 11,135 $ (21,412 ) $ 3,710 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Fiscal Quarter Ended April 30, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 1 $ 4,189 $ — $ 4,190 Intercompany revenue — — 529 12 (541 ) — Total revenue — — 530 4,201 (541 ) 4,190 Cost of products sold: Cost of products sold — — 42 1,522 — 1,564 Intercompany cost of products sold — — — 63 (63 ) — Purchase accounting effect on inventory — — — 1 — 1 Amortization of acquisition-related intangible assets — — — 639 — 639 Restructuring charges — — 5 5 — 10 Total cost of products sold — — 47 2,230 (63 ) 2,214 Gross margin — — 483 1,971 (478 ) 1,976 Research and development — — 345 484 — 829 Intercompany operating expense — — — 478 (478 ) — Selling, general and administrative — 6 81 117 — 204 Amortization of acquisition-related intangible assets — — — 442 — 442 Restructuring, impairment and disposal charges — — 3 24 — 27 Total operating expenses — 6 429 1,545 (478 ) 1,502 Operating income (loss) — (6 ) 54 426 — 474 Interest expense — — (118 ) 6 — (112 ) Intercompany interest expense — (2 ) (16 ) (972 ) 990 — Other income (expense), net — 1 8 (6 ) — 3 Intercompany interest income — — 972 18 (990 ) — Intercompany other income (expense), net — 812 (413 ) (399 ) — — Income (loss) from continuing operations before income taxes and earnings in (loss from) subsidiaries — 805 487 (927 ) — 365 Provision for (benefit from) income taxes — — (139 ) 36 — (103 ) Income (loss) from continuing operations, before earnings in (loss from) subsidiaries — 805 626 (963 ) — 468 Earnings in (loss from) subsidiaries 440 (341 ) (1,830 ) (762 ) 2,493 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 440 464 (1,204 ) (1,725 ) 2,493 468 Income (loss) from discontinued operations, net of income taxes — — 2 (6 ) — (4 ) Net income (loss) 440 464 (1,202 ) (1,731 ) 2,493 464 Net income attributable to noncontrolling interest — 24 — — — 24 Net income (loss) attributable to common stock $ 440 $ 440 $ (1,202 ) $ (1,731 ) $ 2,493 $ 440 Net income (loss) $ 440 $ 464 $ (1,202 ) $ (1,731 ) $ 2,493 $ 464 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income (loss) 440 464 (1,202 ) (1,730 ) 2,493 465 Comprehensive income attributable to noncontrolling interest — 24 — — — 24 Comprehensive income (loss) attributable to common stock $ 440 $ 440 $ (1,202 ) $ (1,730 ) $ 2,493 $ 441 Condensed Consolidating Statements of Operations and Comprehensive Income Two Fiscal Quarters Ended May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ — $ 10,341 $ — $ 10,341 Intercompany revenue — — 1,150 — (1,150 ) — Total revenue — — 1,150 10,341 (1,150 ) 10,341 Cost of products sold: Cost of products sold — — 67 3,528 — 3,595 Intercompany cost of products sold — — — 71 (71 ) — Purchase accounting effect on inventory — — — 70 — 70 Amortization of acquisition-related intangible assets — — — 1,480 — 1,480 Restructuring charges — — 2 15 — 17 Total cost of products sold — — 69 5,164 (71 ) 5,162 Gross margin — — 1,081 5,177 (1,079 ) 5,179 Research and development — — 813 1,048 — 1,861 Intercompany operating expense — — — 1,079 (1,079 ) — Selling, general and administrative 2 84 157 342 — 585 Amortization of acquisition-related intangible assets — — — 406 — 406 Restructuring, impairment and disposal charges — — 44 139 — 183 Total operating expenses 2 84 1,014 3,014 (1,079 ) 3,035 Operating income (loss) (2 ) (84 ) 67 2,163 — 2,144 Interest expense — — (329 ) (2 ) — (331 ) Intercompany interest expense — — (140 ) (1,093 ) 1,233 — Other income, net — 2 47 32 — 81 Intercompany interest income — — 1,093 140 (1,233 ) — Intercompany other income (expense), net — 229 (57 ) (172 ) — — Income (loss) from continuing operations before income taxes and earnings in subsidiaries (2 ) 147 681 1,068 — 1,894 Benefit from income taxes — — (7,981 ) (442 ) — (8,423 ) Income (loss) from continuing operations before earnings in subsidiaries (2 ) 147 8,662 1,510 — 10,317 Earnings in subsidiaries 9,950 10,154 9,503 28,113 (57,720 ) — Income from continuing operations and earnings in subsidiaries 9,948 10,301 18,165 29,623 (57,720 ) 10,317 Loss from discontinued operations, net of income taxes — — (2 ) (16 ) — (18 ) Net income 9,948 10,301 18,163 29,607 (57,720 ) 10,299 Net income attributable to noncontrolling interest — 351 — — — 351 Net income attributable to common stock $ 9,948 $ 9,950 $ 18,163 $ 29,607 $ (57,720 ) $ 9,948 Net income $ 9,948 $ 10,301 $ 18,163 $ 29,607 $ (57,720 ) $ 10,299 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income 9,948 10,301 18,163 29,608 (57,720 ) 10,300 Comprehensive income attributable to noncontrolling interest — 351 — — — 351 Comprehensive income attributable to common stock $ 9,948 $ 9,950 $ 18,163 $ 29,608 $ (57,720 ) $ 9,949 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Two Fiscal Quarters Ended April 30, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 74 $ 8,255 $ — $ 8,329 Intercompany revenue — — 910 9 (919 ) — Total revenue — — 984 8,264 (919 ) 8,329 Cost of products sold: Cost of products sold — — 87 3,050 — 3,137 Intercompany cost of products sold — — (12 ) 122 (110 ) — Purchase accounting effect on inventory — — — 1 — 1 Amortization of acquisition-related intangible assets — — 7 1,191 — 1,198 Restructuring charges — — 8 8 — 16 Total cost of products sold — — 90 4,372 (110 ) 4,352 Gross margin — — 894 3,892 (809 ) 3,977 Research and development — — 713 924 — 1,637 Intercompany operating expense — — (80 ) 889 (809 ) — Selling, general and administrative — 13 175 217 — 405 Amortization of acquisition-related intangible assets — — 7 875 — 882 Restructuring, impairment and disposal charges — — 18 55 — 73 Total operating expenses — 13 833 2,960 (809 ) 2,997 Operating income (loss) — (13 ) 61 932 — 980 Interest expense — — (169 ) (54 ) — (223 ) Intercompany interest expense — (3 ) (90 ) (976 ) 1,069 — Loss on extinguishment of debt — — (52 ) (107 ) — (159 ) Other income, net — 1 6 27 — 34 Intercompany interest income — 1 976 92 (1,069 ) — Intercompany other income (expense), net — 1,013 (479 ) (534 ) — — Income (loss) from continuing operations before income taxes and earnings in (loss from) subsidiaries — 999 253 (620 ) — 632 Provision for (benefit from) income taxes — — (109 ) 16 — (93 ) Income (loss) from continuing operations, before earnings in (loss from) subsidiaries — 999 362 (636 ) — 725 Earnings in (loss from) subsidiaries 679 (283 ) (2,061 ) (1,028 ) 2,693 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 679 716 (1,699 ) (1,664 ) 2,693 725 Loss from discontinued operations, net of income taxes — — (8 ) (1 ) — (9 ) Net income (loss) 679 716 (1,707 ) (1,665 ) 2,693 716 Net income attributable to noncontrolling interest — 37 — — — 37 Net income (loss) attributable to common stock $ 679 $ 679 $ (1,707 ) $ (1,665 ) $ 2,693 $ 679 Net income (loss) $ 679 $ 716 $ (1,707 ) $ (1,665 ) $ 2,693 $ 716 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income (loss) 679 716 (1,707 ) (1,664 ) 2,693 717 Comprehensive income attributable to noncontrolling interest — 37 — — — 37 Comprehensive income (loss) attributable to common stock $ 679 $ 679 $ (1,707 ) $ (1,664 ) $ 2,693 $ 680 Condensed Consolidating Statements of Cash Flows Two Fiscal Quarters Ended May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income $ 9,948 $ 10,301 $ 18,163 $ 29,607 $ (57,720 ) $ 10,299 Adjustments to reconcile net income to net cash provided by (used in) operating activities (9,611 ) (10,001 ) (18,528 ) (26,110 ) 57,949 (6,301 ) Net cash provided by (used in) operating activities 337 300 (365 ) 3,497 229 3,998 Cash flows from investing activities: Intercompany contributions paid — (102 ) (9,099 ) (3,002 ) 12,203 — Distributions received from subsidiaries — 1,521 — 1,521 (3,042 ) — Net change in intercompany loans — 28 8,346 2,181 (10,555 ) — Acquisitions of businesses, net of cash acquired — — — (4,786 ) — (4,786 ) Proceeds from sales of businesses — — — 782 — 782 Purchases of property, plant and equipment — — (114 ) (295 ) — (409 ) Proceeds from disposals of property, plant and equipment — — 1 237 — 238 Purchases of investments — — (50 ) (199 ) — (249 ) Proceeds from sale of investment — — 54 — — 54 Other — — — (12 ) — (12 ) Net cash provided by (used in) investing activities — 1,447 (862 ) (3,573 ) (1,394 ) (4,382 ) Cash flows from financing activities: Intercompany contributions received — — 3,231 9,201 (12,432 ) — Dividend and distribution payments — (1,521 ) (1,521 ) (1,521 ) 3,042 (1,521 ) Net intercompany borrowings — (27 ) (2,125 ) (8,403 ) 10,555 — Repayment of debt — — — (856 ) — (856 ) Repurchases of common stock (347 ) — — — — (347 ) Issuance of common stock, net 10 102 — — — 112 Payment of capital lease obligations — — — (21 ) — (21 ) Net cash used in financing activities (337 ) (1,446 ) (415 ) (1,600 ) 1,165 (2,633 ) Net change in cash and cash equivalents — 301 (1,642 ) (1,676 ) — (3,017 ) Cash and cash equivalents at the beginning of period — 194 7,555 3,455 — 11,204 Cash and cash equivalents at end of period $ — $ 495 $ 5,913 $ 1,779 $ — $ 8,187 Condensed Consolidating Statements of Cash Flows Two Fiscal Quarters Ended April 30, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income (loss) $ 679 $ 716 $ (1,707 ) $ (1,665 ) $ 2,693 $ 716 Adjustments to reconcile net income (loss) to net cash provided by operating activities (679 ) (463 ) 1,912 4,143 (2,693 ) 2,220 Net cash provided by operating activities — 253 205 2,478 — 2,936 Cash flows from investing activities: Net change in intercompany loans — 410 129 6,393 (6,932 ) — Acquisitions of businesses, net of cash acquired — — — (37 ) — (37 ) Proceeds from sale of business — — — 10 — 10 Purchases of property, plant and equipment — — (185 ) (396 ) — (581 ) Purchases of investments — — (200 ) — — (200 ) Other — — — (4 ) — (4 ) Net cash provided by (used in) investing activities — 410 (256 ) 5,966 (6,932 ) (812 ) Cash flows from financing activities: Net intercompany borrowings — 465 (6,004 ) (1,393 ) 6,932 — Proceeds from issuance of long-term debt — — 13,446 — — 13,446 Repayment of debt — — (5,705 ) (7,963 ) — (13,668 ) Payment of debt issuance costs — — (23 ) — — (23 ) Dividend and distribution payments — (868 ) — — — (868 ) Issuance of common stock, net — 150 — — — 150 Other — — (2 ) (2 ) — (4 ) Net cash provided by (used in) financing activities — (253 ) 1,712 (9,358 ) 6,932 (967 ) Net change in cash and cash equivalents — 410 1,661 (914 ) — 1,157 Cash and cash equivalents at the beginning of period — 53 1,092 1,952 — 3,097 Cash and cash equivalents at end of period $ — $ 463 $ 2,753 $ 1,038 $ — $ 4,254 |
Subsequent Events
Subsequent Events | 6 Months Ended |
May 06, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event Cash Dividends Declared On June 6, 2018 , our Board of Directors declared a cash dividend of $1.75 per share, payable on June 29, 2018 to stockholders of record at the close of business on June 20, 2018 . |
Overview, Basis of Presentati22
Overview, Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
May 06, 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 ended 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 . “ Acquisition of Brocade ” for additional information. The accompanying condensed consolidated financial statements include the accounts of Broadcom and our 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-Singapore’s audited consolidated financial statements included in its Annual Report on Form 10-K for fiscal year 2017 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. The operating results for the fiscal quarter and two fiscal quarters ended May 6, 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 guidance 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 noncontrolling interest. In the second quarter of fiscal year 2018, we early adopted guidance issued by the FASB in February 2018 that allows companies to reclassify stranded income tax effects resulting from the U.S. Tax Cuts and Jobs Act, or the 2017 Tax Reform Act, from accumulated other comprehensive loss to retained earnings. The stranded income tax effects resulted from the change in the federal tax rate for deferred taxes recorded in accumulated other comprehensive loss. The adoption of this guidance resulted in a cumulative-effect adjustment as of the beginning of the second quarter of fiscal year 2018, which consisted of an increase to our accumulated other comprehensive loss of $16 million , an increase to retained earnings of $15 million and a $1 million increase to noncontrolling 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 on a retrospective basis; and early adoption is permitted. We do not intend to adopt this guidance early and will present our statements of cash flows in accordance with this guidance upon 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 common stock by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock and potentially dilutive shares of common stock outstanding during the period. Diluted shares include the dilutive effect of in-the-money stock options, RSUs and employee stock purchase plan rights under the Broadcom Limited Second Amended and Restated Employee Share Purchase Plan, as amended, or ESPP (together referred to as equity awards). Diluted shares also included shares issuable upon exchange of the LP Units for the periods presented prior to the effective time of Mandatory Exchange (refer to Note 7 . “ Stockholders’ Equity ” for additional information). The dilutive effect of equity awards is calculated based on the average stock price for each fiscal period, using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and 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 shares. The dilutive effect of the LP Units was calculated using the if-converted method. The if-converted method assumed that the LP Units were converted at the beginning of the reporting period and included net income attributable to noncontrolling interest for the period. |
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) | 6 Months Ended |
May 06, 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 May 6, 2018: Purchased technology $ 15,770 $ (5,295 ) $ 10,475 Customer contracts and related relationships 1,792 (770 ) 1,022 Trade names 578 (143 ) 435 Other 151 (37 ) 114 Intangible assets subject to amortization 18,291 (6,245 ) 12,046 IPR&D 300 — 300 Total $ 18,591 $ (6,245 ) $ 12,346 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: Description IPR&D Percentage of Completion Estimated Cost to Complete Expected Release Date (By Fiscal Year) (Dollars in millions) Directors $ 64 72 % $ 45 2019 Switches $ 50 81 % $ 21 2018 Embedded $ 31 74 % $ 22 2019 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 $ 1,294 Goodwill 2,189 Intangible assets 3,396 Other long-term assets 79 Total assets acquired 6,958 Current portion of long-term debt (856 ) Other current liabilities (370 ) Long-term debt (38 ) Other long-term liabilities (906 ) Total liabilities assumed (2,170 ) 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 Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Pro forma net revenue $ 5,017 $ 4,662 $ 10,464 $ 9,301 Pro forma net income attributable to common stock $ 3,744 $ 442 $ 10,077 $ 554 |
Supplemental Financial Inform24
Supplemental Financial Information (Tables) | 6 Months Ended |
May 06, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of inventory | May 6, October 29, (In millions) Finished goods $ 510 $ 562 Work-in-process 542 696 Raw materials 183 189 Total inventory $ 1,235 $ 1,447 |
Schedule of Other Current Assets [Table Text Block] | May 6, October 29, (In millions) Prepaid expenses $ 174 $ 440 Other receivables 87 155 Other 42 129 Total other current assets $ 303 $ 724 |
Schedule of Accrued Rebate [Table Text Block] | Two Fiscal Quarters Ended May 6, April 30, (In millions) Beginning balance $ 124 $ 317 Charged as a reduction of revenue 64 120 Reversal of unclaimed rebates (10 ) (36 ) Payments (125 ) (222 ) Ending balance $ 53 $ 179 |
Other Noncurrent Liabilities [Table Text Block] | May 6, October 29, (In millions) Deferred tax liabilities (a) $ 266 $ 10,019 Unrecognized tax benefits (a) (b) 2,700 1,011 Other 298 242 Total other long-term liabilities $ 3,264 $ 11,272 ________________________________ (a) Refer to Note 8 . “ 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 Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Net revenue $ — $ 3 $ 18 $ 5 Loss from discontinued operations $ (3 ) $ (4 ) $ (18 ) $ (9 ) |
Cash Flow, Supplemental Disclosures [Text Block] | Fiscal Quarter Ended Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Cash paid for interest $ 1 $ 1 $ 233 $ 103 Cash paid for income taxes $ 87 $ 121 $ 196 $ 218 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
May 06, 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 — 2,119 — 2,189 Other acquisition 13 — — — 13 Balance as of May 6, 2018 $ 17,705 $ 5,945 $ 3,114 $ 144 $ 26,908 |
Schedule of Finite- and Indefinite-lived Intangible Assets | Intangible Assets Gross Carrying Amount Accumulated Amortization Net Book Value (In millions) As of May 6, 2018: Purchased technology $ 15,770 $ (5,295 ) $ 10,475 Customer contracts and related relationships 1,792 (770 ) 1,022 Trade names 578 (143 ) 435 Other 151 (37 ) 114 Intangible assets subject to amortization 18,291 (6,245 ) 12,046 IPR&D 300 — 300 Total $ 18,591 $ (6,245 ) $ 12,346 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 May 6, 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) $ 1,669 2019 2,872 2020 2,424 2021 1,930 2022 1,425 Thereafter 1,726 Total $ 12,046 |
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: May 6, (In years) Purchased technology 6 Customer contracts and related relationships 6 Trade names 12 Other 9 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
May 06, 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 Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, Numerator - Basic: (In millions, except per share data) Income from continuing operations $ 3,736 $ 468 $ 10,317 $ 725 Less: Income from continuing operations attributable to noncontrolling interest 15 24 352 37 Income from continuing operations attributable to common stock 3,721 444 9,965 688 Loss from discontinued operations, net of income taxes (3 ) (4 ) (18 ) (9 ) Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest — — (1 ) — Loss from discontinued operations, net of income taxes, attributable to common stock (3 ) (4 ) (17 ) (9 ) Net income attributable to common stock $ 3,718 $ 440 $ 9,948 $ 679 Numerator - Diluted: Income from continuing operations $ 3,736 $ 468 $ 10,317 $ 725 Loss from discontinued operations, net of income taxes (3 ) (4 ) (18 ) (9 ) Net income $ 3,733 $ 464 $ 10,299 $ 716 Denominator: Weighted-average shares outstanding - basic 421 403 415 401 Dilutive effect of equity awards 13 16 15 16 Exchange of noncontrolling interest 14 23 18 23 Weighted-average shares outstanding - diluted 448 442 448 440 Basic income (loss) per share: Income per share from continuing operations $ 8.84 $ 1.10 $ 24.01 $ 1.72 Loss per share from discontinued operations (0.01 ) (0.01 ) (0.04 ) (0.03 ) Net income per share $ 8.83 $ 1.09 $ 23.97 $ 1.69 Diluted income (loss) per share: Income per share from continuing operations $ 8.34 $ 1.06 $ 23.03 $ 1.65 Loss per share from discontinued operations (0.01 ) (0.01 ) (0.04 ) (0.02 ) Net income per share $ 8.33 $ 1.05 $ 22.99 $ 1.63 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
May 06, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Notes [Table Text Block] | As of May 6, 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 BRCM 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 Assumed 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 (129 ) (141 ) Total carrying value of debt $ 17,598 $ 17,548 |
Schedule of Future Principal Payments of Debt [Table Text Block] | The future scheduled principal payments for the outstanding 2017 Senior Notes, Assumed BRCM Senior Notes and Assumed Brocade Convertible Notes as of May 6, 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 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
May 06, 2018 | |
Equity [Abstract] | |
Schedule of Dividends Declared and Paid [Table Text Block] | Fiscal Quarter Ended Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions, except per share data) Cash dividends and distributions paid per share/unit $ 1.75 $ 1.02 $ 3.50 $ 2.04 Cash dividends paid to stockholders $ 727 $ 414 $ 1,444 $ 822 Cash distributions paid to limited partners $ 39 $ 23 $ 77 $ 46 |
Summary of Stock-based Compensation Expense | Fiscal Quarter Ended Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Cost of products sold $ 21 $ 15 $ 41 $ 29 Research and development 205 150 408 291 Selling, general and administrative 70 51 146 97 Total stock-based compensation expense $ 296 $ 216 $ 595 $ 417 |
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 7 $ 240.87 Vested (5 ) $ 155.45 Forfeited (1 ) $ 161.95 Balance as of May 6, 2018 19 $ 194.00 |
Summary of Option Activity | A summary of time- and market-based stock 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 (1 ) $ 45.76 $ 318 Cancelled — * $ 74.66 Balance as of May 6, 2018 9 $ 50.08 2.41 $ 1,593 Fully vested as of May 6, 2018 8 $ 48.96 2.38 $ 1,543 Fully vested and expected to vest as of May 6, 2018 9 $ 50.08 2.41 $ 1,593 ________________________________ * Represents fewer than 0.5 million shares. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
May 06, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Fiscal Quarter Ended Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Net revenue: Wired infrastructure $ 2,295 $ 2,111 $ 4,170 $ 4,195 Wireless communications 1,294 1,150 3,504 2,325 Enterprise storage 1,162 712 2,153 1,419 Industrial & other 263 217 514 390 Total net revenue $ 5,014 $ 4,190 $ 10,341 $ 8,329 Operating income: Wired infrastructure $ 1,058 $ 937 $ 1,845 $ 1,870 Wireless communications 522 414 1,581 841 Enterprise storage 720 382 1,299 757 Industrial & other 152 109 294 170 Unallocated expenses (1,251 ) (1,368 ) (2,875 ) (2,658 ) Total operating income $ 1,201 $ 474 $ 2,144 $ 980 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
May 06, 2018 | |
Related Party Transactions [Abstract] | |
Transactions and Balances with Related Parties | Fiscal Quarter Ended Two Fiscal Quarters Ended May 6, April 30, May 6, April 30, (In millions) Total net revenue $ 200 $ 71 $ 382 $ 148 Total costs and expenses, including inventory purchases $ 31 $ 46 $ 67 $ 65 May 6, October 29, (In millions) Total receivables $ 76 $ 31 Total payables $ 8 $ 12 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
May 06, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Obligations and Commitments | The following table summarizes contractual obligations and commitments as of May 6, 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 $ 21,371 $ 430 $ 566 $ 3,321 $ 1,242 $ 3,940 $ 11,872 Purchase commitments $ 931 $ 843 $ 69 $ 18 $ 1 $ — $ — |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
May 06, 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) 129 61 190 Utilization (121 ) (55 ) (176 ) Balance as of May 6, 2018 (b) $ 36 $ 23 $ 59 _________________________________ (a) Included $2 million of restructuring expense related to discontinued operations recognized during the two fiscal quarters ended May 6, 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 in the third quarter of fiscal year 2018 . The leases and other exit costs balance is expected to be paid during the remaining terms of the leases, which extend through fiscal year 2025 . |
Condensed Consolidating Finan33
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
May 06, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 495 $ 5,913 $ 1,779 $ — $ 8,187 Trade accounts receivable, net — — — 2,749 — 2,749 Inventory — — — 1,235 — 1,235 Intercompany receivable 10 6 1,693 1,393 (3,102 ) — Intercompany loan receivable — — 1,320 2,554 (3,874 ) — Other current assets — — 37 266 — 303 Total current assets 10 501 8,963 9,976 (6,976 ) 12,474 Long-term assets: Property, plant and equipment, net — — 241 2,479 — 2,720 Goodwill — — 1,360 25,548 — 26,908 Intangible assets, net — — — 12,346 — 12,346 Investment in subsidiaries 32,405 32,413 35,187 96,595 (196,600 ) — Intercompany loan receivable, long-term — — 43,565 937 (44,502 ) — Other long-term assets — — 27 461 — 488 Total assets $ 32,415 $ 32,914 $ 89,343 $ 148,342 $ (248,078 ) $ 54,936 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 2 $ 22 $ 38 $ 774 $ — $ 836 Employee compensation and benefits — — 137 280 — 417 Current portion of long-term debt — — 117 — — 117 Intercompany payable 346 463 1,158 1,135 (3,102 ) — Intercompany loan payable — — 2,554 1,320 (3,874 ) — Other current liabilities — — 677 77 — 754 Total current liabilities 348 485 4,681 3,586 (6,976 ) 2,124 Long-term liabilities: Long-term debt — — 17,444 37 — 17,481 Deferred tax liabilities — — 5 261 — 266 Intercompany loan payable, long-term — 21 915 43,566 (44,502 ) — Unrecognized tax benefits — — 1,941 759 — 2,700 Other long-term liabilities — — 163 135 — 298 Total liabilities 348 506 25,149 48,344 (51,478 ) 22,869 Total stockholders’ equity 32,067 32,408 64,194 99,998 (196,600 ) 32,067 Total liabilities and stockholders' equity $ 32,415 $ 32,914 $ 89,343 $ 148,342 $ (248,078 ) $ 54,936 Condensed Consolidating Balance Sheet October 29, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 194 $ 7,555 $ 3,455 $ — $ 11,204 Trade accounts receivable, net — — — 2,448 — 2,448 Inventory — — — 1,447 — 1,447 Intercompany receivable — 32 279 309 (620 ) — Intercompany loan receivable — 28 1,891 8,849 (10,768 ) — Other current assets — — 350 374 — 724 Total current assets — 254 10,075 16,882 (11,388 ) 15,823 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 20,285 23,112 28,049 63,739 (135,185 ) — Intercompany loan receivable, long-term — — 41,547 — (41,547 ) — Other long-term assets — — 213 245 — 458 Total assets $ 20,285 $ 23,366 $ 81,451 $ 117,436 $ (188,120 ) $ 54,418 LIABILITIES AND STOCKHOLDERS’ 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 — 123 186 311 (620 ) — Intercompany loan payable — 50 8,799 1,919 (10,768 ) — Other current liabilities — — 254 427 — 681 Total current liabilities — 180 9,702 4,035 (11,388 ) 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 — 180 37,999 45,988 (52,935 ) 31,232 Total stockholders’ equity 20,285 20,285 43,452 71,448 (135,185 ) 20,285 Noncontrolling interest — 2,901 — — — 2,901 Total liabilities and stockholders' equity $ 20,285 $ 23,366 $ 81,451 $ 117,436 $ (188,120 ) $ 54,418 |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ — $ 5,014 $ — $ 5,014 Intercompany revenue — — 566 — (566 ) — Total revenue — — 566 5,014 (566 ) 5,014 Cost of products sold: Cost of products sold — — 35 1,661 — 1,696 Intercompany cost of products sold — — — 37 (37 ) — Amortization of acquisition-related intangible assets — — — 765 — 765 Restructuring charges — — — 2 — 2 Total cost of products sold — — 35 2,465 (37 ) 2,463 Gross margin — — 531 2,549 (529 ) 2,551 Research and development — — 407 529 — 936 Intercompany operating expense — — — 529 (529 ) — Selling, general and administrative 2 50 72 170 — 294 Amortization of acquisition-related intangible assets — — — 67 — 67 Restructuring, impairment and disposal charges — — 11 42 — 53 Total operating expenses 2 50 490 1,337 (529 ) 1,350 Operating income (loss) (2 ) (50 ) 41 1,212 — 1,201 Interest expense — — (148 ) — — (148 ) Intercompany interest expense — — (81 ) (519 ) 600 — Other income, net — 1 28 17 — 46 Intercompany interest income — — 519 81 (600 ) — Intercompany other income (expense), net — 50 — (50 ) — — Income (loss) from continuing operations before income taxes and earnings in subsidiaries (2 ) 1 359 741 — 1,099 Benefit from income taxes — — (2,521 ) (116 ) — (2,637 ) Income (loss) from continuing operations before earnings in subsidiaries (2 ) 1 2,880 857 — 3,736 Earnings in subsidiaries 3,720 3,734 3,680 10,278 (21,412 ) — Income from continuing operations and earnings in subsidiaries 3,718 3,735 6,560 11,135 (21,412 ) 3,736 Loss from discontinued operations, net of income taxes — — (2 ) (1 ) — (3 ) Net income 3,718 3,735 6,558 11,134 (21,412 ) 3,733 Net income attributable to noncontrolling interest — 15 — — — 15 Net income attributable to common stock $ 3,718 $ 3,720 $ 6,558 $ 11,134 $ (21,412 ) $ 3,718 Net income $ 3,718 $ 3,735 $ 6,558 $ 11,134 $ (21,412 ) $ 3,733 Other comprehensive income (loss), net of tax: Change in unrealized gain on available-for-sale investments — — (9 ) — — (9 ) Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income (loss) — — (9 ) 1 — (8 ) Comprehensive income 3,718 3,735 6,549 11,135 (21,412 ) 3,725 Comprehensive income attributable to noncontrolling interest — 15 — — — 15 Comprehensive income attributable to common stock $ 3,718 $ 3,720 $ 6,549 $ 11,135 $ (21,412 ) $ 3,710 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Fiscal Quarter Ended April 30, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 1 $ 4,189 $ — $ 4,190 Intercompany revenue — — 529 12 (541 ) — Total revenue — — 530 4,201 (541 ) 4,190 Cost of products sold: Cost of products sold — — 42 1,522 — 1,564 Intercompany cost of products sold — — — 63 (63 ) — Purchase accounting effect on inventory — — — 1 — 1 Amortization of acquisition-related intangible assets — — — 639 — 639 Restructuring charges — — 5 5 — 10 Total cost of products sold — — 47 2,230 (63 ) 2,214 Gross margin — — 483 1,971 (478 ) 1,976 Research and development — — 345 484 — 829 Intercompany operating expense — — — 478 (478 ) — Selling, general and administrative — 6 81 117 — 204 Amortization of acquisition-related intangible assets — — — 442 — 442 Restructuring, impairment and disposal charges — — 3 24 — 27 Total operating expenses — 6 429 1,545 (478 ) 1,502 Operating income (loss) — (6 ) 54 426 — 474 Interest expense — — (118 ) 6 — (112 ) Intercompany interest expense — (2 ) (16 ) (972 ) 990 — Other income (expense), net — 1 8 (6 ) — 3 Intercompany interest income — — 972 18 (990 ) — Intercompany other income (expense), net — 812 (413 ) (399 ) — — Income (loss) from continuing operations before income taxes and earnings in (loss from) subsidiaries — 805 487 (927 ) — 365 Provision for (benefit from) income taxes — — (139 ) 36 — (103 ) Income (loss) from continuing operations, before earnings in (loss from) subsidiaries — 805 626 (963 ) — 468 Earnings in (loss from) subsidiaries 440 (341 ) (1,830 ) (762 ) 2,493 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 440 464 (1,204 ) (1,725 ) 2,493 468 Income (loss) from discontinued operations, net of income taxes — — 2 (6 ) — (4 ) Net income (loss) 440 464 (1,202 ) (1,731 ) 2,493 464 Net income attributable to noncontrolling interest — 24 — — — 24 Net income (loss) attributable to common stock $ 440 $ 440 $ (1,202 ) $ (1,731 ) $ 2,493 $ 440 Net income (loss) $ 440 $ 464 $ (1,202 ) $ (1,731 ) $ 2,493 $ 464 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income (loss) 440 464 (1,202 ) (1,730 ) 2,493 465 Comprehensive income attributable to noncontrolling interest — 24 — — — 24 Comprehensive income (loss) attributable to common stock $ 440 $ 440 $ (1,202 ) $ (1,730 ) $ 2,493 $ 441 Condensed Consolidating Statements of Operations and Comprehensive Income Two Fiscal Quarters Ended May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ — $ 10,341 $ — $ 10,341 Intercompany revenue — — 1,150 — (1,150 ) — Total revenue — — 1,150 10,341 (1,150 ) 10,341 Cost of products sold: Cost of products sold — — 67 3,528 — 3,595 Intercompany cost of products sold — — — 71 (71 ) — Purchase accounting effect on inventory — — — 70 — 70 Amortization of acquisition-related intangible assets — — — 1,480 — 1,480 Restructuring charges — — 2 15 — 17 Total cost of products sold — — 69 5,164 (71 ) 5,162 Gross margin — — 1,081 5,177 (1,079 ) 5,179 Research and development — — 813 1,048 — 1,861 Intercompany operating expense — — — 1,079 (1,079 ) — Selling, general and administrative 2 84 157 342 — 585 Amortization of acquisition-related intangible assets — — — 406 — 406 Restructuring, impairment and disposal charges — — 44 139 — 183 Total operating expenses 2 84 1,014 3,014 (1,079 ) 3,035 Operating income (loss) (2 ) (84 ) 67 2,163 — 2,144 Interest expense — — (329 ) (2 ) — (331 ) Intercompany interest expense — — (140 ) (1,093 ) 1,233 — Other income, net — 2 47 32 — 81 Intercompany interest income — — 1,093 140 (1,233 ) — Intercompany other income (expense), net — 229 (57 ) (172 ) — — Income (loss) from continuing operations before income taxes and earnings in subsidiaries (2 ) 147 681 1,068 — 1,894 Benefit from income taxes — — (7,981 ) (442 ) — (8,423 ) Income (loss) from continuing operations before earnings in subsidiaries (2 ) 147 8,662 1,510 — 10,317 Earnings in subsidiaries 9,950 10,154 9,503 28,113 (57,720 ) — Income from continuing operations and earnings in subsidiaries 9,948 10,301 18,165 29,623 (57,720 ) 10,317 Loss from discontinued operations, net of income taxes — — (2 ) (16 ) — (18 ) Net income 9,948 10,301 18,163 29,607 (57,720 ) 10,299 Net income attributable to noncontrolling interest — 351 — — — 351 Net income attributable to common stock $ 9,948 $ 9,950 $ 18,163 $ 29,607 $ (57,720 ) $ 9,948 Net income $ 9,948 $ 10,301 $ 18,163 $ 29,607 $ (57,720 ) $ 10,299 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income 9,948 10,301 18,163 29,608 (57,720 ) 10,300 Comprehensive income attributable to noncontrolling interest — 351 — — — 351 Comprehensive income attributable to common stock $ 9,948 $ 9,950 $ 18,163 $ 29,608 $ (57,720 ) $ 9,949 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Two Fiscal Quarters Ended April 30, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 74 $ 8,255 $ — $ 8,329 Intercompany revenue — — 910 9 (919 ) — Total revenue — — 984 8,264 (919 ) 8,329 Cost of products sold: Cost of products sold — — 87 3,050 — 3,137 Intercompany cost of products sold — — (12 ) 122 (110 ) — Purchase accounting effect on inventory — — — 1 — 1 Amortization of acquisition-related intangible assets — — 7 1,191 — 1,198 Restructuring charges — — 8 8 — 16 Total cost of products sold — — 90 4,372 (110 ) 4,352 Gross margin — — 894 3,892 (809 ) 3,977 Research and development — — 713 924 — 1,637 Intercompany operating expense — — (80 ) 889 (809 ) — Selling, general and administrative — 13 175 217 — 405 Amortization of acquisition-related intangible assets — — 7 875 — 882 Restructuring, impairment and disposal charges — — 18 55 — 73 Total operating expenses — 13 833 2,960 (809 ) 2,997 Operating income (loss) — (13 ) 61 932 — 980 Interest expense — — (169 ) (54 ) — (223 ) Intercompany interest expense — (3 ) (90 ) (976 ) 1,069 — Loss on extinguishment of debt — — (52 ) (107 ) — (159 ) Other income, net — 1 6 27 — 34 Intercompany interest income — 1 976 92 (1,069 ) — Intercompany other income (expense), net — 1,013 (479 ) (534 ) — — Income (loss) from continuing operations before income taxes and earnings in (loss from) subsidiaries — 999 253 (620 ) — 632 Provision for (benefit from) income taxes — — (109 ) 16 — (93 ) Income (loss) from continuing operations, before earnings in (loss from) subsidiaries — 999 362 (636 ) — 725 Earnings in (loss from) subsidiaries 679 (283 ) (2,061 ) (1,028 ) 2,693 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 679 716 (1,699 ) (1,664 ) 2,693 725 Loss from discontinued operations, net of income taxes — — (8 ) (1 ) — (9 ) Net income (loss) 679 716 (1,707 ) (1,665 ) 2,693 716 Net income attributable to noncontrolling interest — 37 — — — 37 Net income (loss) attributable to common stock $ 679 $ 679 $ (1,707 ) $ (1,665 ) $ 2,693 $ 679 Net income (loss) $ 679 $ 716 $ (1,707 ) $ (1,665 ) $ 2,693 $ 716 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income (loss) 679 716 (1,707 ) (1,664 ) 2,693 717 Comprehensive income attributable to noncontrolling interest — 37 — — — 37 Comprehensive income (loss) attributable to common stock $ 679 $ 679 $ (1,707 ) $ (1,664 ) $ 2,693 $ 680 |
Condensed Consolidating Statements of Comprehensive Income (Loss) | Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Quarter Ended May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ — $ 5,014 $ — $ 5,014 Intercompany revenue — — 566 — (566 ) — Total revenue — — 566 5,014 (566 ) 5,014 Cost of products sold: Cost of products sold — — 35 1,661 — 1,696 Intercompany cost of products sold — — — 37 (37 ) — Amortization of acquisition-related intangible assets — — — 765 — 765 Restructuring charges — — — 2 — 2 Total cost of products sold — — 35 2,465 (37 ) 2,463 Gross margin — — 531 2,549 (529 ) 2,551 Research and development — — 407 529 — 936 Intercompany operating expense — — — 529 (529 ) — Selling, general and administrative 2 50 72 170 — 294 Amortization of acquisition-related intangible assets — — — 67 — 67 Restructuring, impairment and disposal charges — — 11 42 — 53 Total operating expenses 2 50 490 1,337 (529 ) 1,350 Operating income (loss) (2 ) (50 ) 41 1,212 — 1,201 Interest expense — — (148 ) — — (148 ) Intercompany interest expense — — (81 ) (519 ) 600 — Other income, net — 1 28 17 — 46 Intercompany interest income — — 519 81 (600 ) — Intercompany other income (expense), net — 50 — (50 ) — — Income (loss) from continuing operations before income taxes and earnings in subsidiaries (2 ) 1 359 741 — 1,099 Benefit from income taxes — — (2,521 ) (116 ) — (2,637 ) Income (loss) from continuing operations before earnings in subsidiaries (2 ) 1 2,880 857 — 3,736 Earnings in subsidiaries 3,720 3,734 3,680 10,278 (21,412 ) — Income from continuing operations and earnings in subsidiaries 3,718 3,735 6,560 11,135 (21,412 ) 3,736 Loss from discontinued operations, net of income taxes — — (2 ) (1 ) — (3 ) Net income 3,718 3,735 6,558 11,134 (21,412 ) 3,733 Net income attributable to noncontrolling interest — 15 — — — 15 Net income attributable to common stock $ 3,718 $ 3,720 $ 6,558 $ 11,134 $ (21,412 ) $ 3,718 Net income $ 3,718 $ 3,735 $ 6,558 $ 11,134 $ (21,412 ) $ 3,733 Other comprehensive income (loss), net of tax: Change in unrealized gain on available-for-sale investments — — (9 ) — — (9 ) Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income (loss) — — (9 ) 1 — (8 ) Comprehensive income 3,718 3,735 6,549 11,135 (21,412 ) 3,725 Comprehensive income attributable to noncontrolling interest — 15 — — — 15 Comprehensive income attributable to common stock $ 3,718 $ 3,720 $ 6,549 $ 11,135 $ (21,412 ) $ 3,710 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Fiscal Quarter Ended April 30, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 1 $ 4,189 $ — $ 4,190 Intercompany revenue — — 529 12 (541 ) — Total revenue — — 530 4,201 (541 ) 4,190 Cost of products sold: Cost of products sold — — 42 1,522 — 1,564 Intercompany cost of products sold — — — 63 (63 ) — Purchase accounting effect on inventory — — — 1 — 1 Amortization of acquisition-related intangible assets — — — 639 — 639 Restructuring charges — — 5 5 — 10 Total cost of products sold — — 47 2,230 (63 ) 2,214 Gross margin — — 483 1,971 (478 ) 1,976 Research and development — — 345 484 — 829 Intercompany operating expense — — — 478 (478 ) — Selling, general and administrative — 6 81 117 — 204 Amortization of acquisition-related intangible assets — — — 442 — 442 Restructuring, impairment and disposal charges — — 3 24 — 27 Total operating expenses — 6 429 1,545 (478 ) 1,502 Operating income (loss) — (6 ) 54 426 — 474 Interest expense — — (118 ) 6 — (112 ) Intercompany interest expense — (2 ) (16 ) (972 ) 990 — Other income (expense), net — 1 8 (6 ) — 3 Intercompany interest income — — 972 18 (990 ) — Intercompany other income (expense), net — 812 (413 ) (399 ) — — Income (loss) from continuing operations before income taxes and earnings in (loss from) subsidiaries — 805 487 (927 ) — 365 Provision for (benefit from) income taxes — — (139 ) 36 — (103 ) Income (loss) from continuing operations, before earnings in (loss from) subsidiaries — 805 626 (963 ) — 468 Earnings in (loss from) subsidiaries 440 (341 ) (1,830 ) (762 ) 2,493 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 440 464 (1,204 ) (1,725 ) 2,493 468 Income (loss) from discontinued operations, net of income taxes — — 2 (6 ) — (4 ) Net income (loss) 440 464 (1,202 ) (1,731 ) 2,493 464 Net income attributable to noncontrolling interest — 24 — — — 24 Net income (loss) attributable to common stock $ 440 $ 440 $ (1,202 ) $ (1,731 ) $ 2,493 $ 440 Net income (loss) $ 440 $ 464 $ (1,202 ) $ (1,731 ) $ 2,493 $ 464 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income (loss) 440 464 (1,202 ) (1,730 ) 2,493 465 Comprehensive income attributable to noncontrolling interest — 24 — — — 24 Comprehensive income (loss) attributable to common stock $ 440 $ 440 $ (1,202 ) $ (1,730 ) $ 2,493 $ 441 Condensed Consolidating Statements of Operations and Comprehensive Income Two Fiscal Quarters Ended May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ — $ 10,341 $ — $ 10,341 Intercompany revenue — — 1,150 — (1,150 ) — Total revenue — — 1,150 10,341 (1,150 ) 10,341 Cost of products sold: Cost of products sold — — 67 3,528 — 3,595 Intercompany cost of products sold — — — 71 (71 ) — Purchase accounting effect on inventory — — — 70 — 70 Amortization of acquisition-related intangible assets — — — 1,480 — 1,480 Restructuring charges — — 2 15 — 17 Total cost of products sold — — 69 5,164 (71 ) 5,162 Gross margin — — 1,081 5,177 (1,079 ) 5,179 Research and development — — 813 1,048 — 1,861 Intercompany operating expense — — — 1,079 (1,079 ) — Selling, general and administrative 2 84 157 342 — 585 Amortization of acquisition-related intangible assets — — — 406 — 406 Restructuring, impairment and disposal charges — — 44 139 — 183 Total operating expenses 2 84 1,014 3,014 (1,079 ) 3,035 Operating income (loss) (2 ) (84 ) 67 2,163 — 2,144 Interest expense — — (329 ) (2 ) — (331 ) Intercompany interest expense — — (140 ) (1,093 ) 1,233 — Other income, net — 2 47 32 — 81 Intercompany interest income — — 1,093 140 (1,233 ) — Intercompany other income (expense), net — 229 (57 ) (172 ) — — Income (loss) from continuing operations before income taxes and earnings in subsidiaries (2 ) 147 681 1,068 — 1,894 Benefit from income taxes — — (7,981 ) (442 ) — (8,423 ) Income (loss) from continuing operations before earnings in subsidiaries (2 ) 147 8,662 1,510 — 10,317 Earnings in subsidiaries 9,950 10,154 9,503 28,113 (57,720 ) — Income from continuing operations and earnings in subsidiaries 9,948 10,301 18,165 29,623 (57,720 ) 10,317 Loss from discontinued operations, net of income taxes — — (2 ) (16 ) — (18 ) Net income 9,948 10,301 18,163 29,607 (57,720 ) 10,299 Net income attributable to noncontrolling interest — 351 — — — 351 Net income attributable to common stock $ 9,948 $ 9,950 $ 18,163 $ 29,607 $ (57,720 ) $ 9,948 Net income $ 9,948 $ 10,301 $ 18,163 $ 29,607 $ (57,720 ) $ 10,299 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income 9,948 10,301 18,163 29,608 (57,720 ) 10,300 Comprehensive income attributable to noncontrolling interest — 351 — — — 351 Comprehensive income attributable to common stock $ 9,948 $ 9,950 $ 18,163 $ 29,608 $ (57,720 ) $ 9,949 Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) Two Fiscal Quarters Ended April 30, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue $ — $ — $ 74 $ 8,255 $ — $ 8,329 Intercompany revenue — — 910 9 (919 ) — Total revenue — — 984 8,264 (919 ) 8,329 Cost of products sold: Cost of products sold — — 87 3,050 — 3,137 Intercompany cost of products sold — — (12 ) 122 (110 ) — Purchase accounting effect on inventory — — — 1 — 1 Amortization of acquisition-related intangible assets — — 7 1,191 — 1,198 Restructuring charges — — 8 8 — 16 Total cost of products sold — — 90 4,372 (110 ) 4,352 Gross margin — — 894 3,892 (809 ) 3,977 Research and development — — 713 924 — 1,637 Intercompany operating expense — — (80 ) 889 (809 ) — Selling, general and administrative — 13 175 217 — 405 Amortization of acquisition-related intangible assets — — 7 875 — 882 Restructuring, impairment and disposal charges — — 18 55 — 73 Total operating expenses — 13 833 2,960 (809 ) 2,997 Operating income (loss) — (13 ) 61 932 — 980 Interest expense — — (169 ) (54 ) — (223 ) Intercompany interest expense — (3 ) (90 ) (976 ) 1,069 — Loss on extinguishment of debt — — (52 ) (107 ) — (159 ) Other income, net — 1 6 27 — 34 Intercompany interest income — 1 976 92 (1,069 ) — Intercompany other income (expense), net — 1,013 (479 ) (534 ) — — Income (loss) from continuing operations before income taxes and earnings in (loss from) subsidiaries — 999 253 (620 ) — 632 Provision for (benefit from) income taxes — — (109 ) 16 — (93 ) Income (loss) from continuing operations, before earnings in (loss from) subsidiaries — 999 362 (636 ) — 725 Earnings in (loss from) subsidiaries 679 (283 ) (2,061 ) (1,028 ) 2,693 — Income (loss) from continuing operations and earnings in (loss from) subsidiaries 679 716 (1,699 ) (1,664 ) 2,693 725 Loss from discontinued operations, net of income taxes — — (8 ) (1 ) — (9 ) Net income (loss) 679 716 (1,707 ) (1,665 ) 2,693 716 Net income attributable to noncontrolling interest — 37 — — — 37 Net income (loss) attributable to common stock $ 679 $ 679 $ (1,707 ) $ (1,665 ) $ 2,693 $ 679 Net income (loss) $ 679 $ 716 $ (1,707 ) $ (1,665 ) $ 2,693 $ 716 Other comprehensive income, net of tax: Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — — 1 — 1 Other comprehensive income — — — 1 — 1 Comprehensive income (loss) 679 716 (1,707 ) (1,664 ) 2,693 717 Comprehensive income attributable to noncontrolling interest — 37 — — — 37 Comprehensive income (loss) attributable to common stock $ 679 $ 679 $ (1,707 ) $ (1,664 ) $ 2,693 $ 680 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows Two Fiscal Quarters Ended May 6, 2018 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income $ 9,948 $ 10,301 $ 18,163 $ 29,607 $ (57,720 ) $ 10,299 Adjustments to reconcile net income to net cash provided by (used in) operating activities (9,611 ) (10,001 ) (18,528 ) (26,110 ) 57,949 (6,301 ) Net cash provided by (used in) operating activities 337 300 (365 ) 3,497 229 3,998 Cash flows from investing activities: Intercompany contributions paid — (102 ) (9,099 ) (3,002 ) 12,203 — Distributions received from subsidiaries — 1,521 — 1,521 (3,042 ) — Net change in intercompany loans — 28 8,346 2,181 (10,555 ) — Acquisitions of businesses, net of cash acquired — — — (4,786 ) — (4,786 ) Proceeds from sales of businesses — — — 782 — 782 Purchases of property, plant and equipment — — (114 ) (295 ) — (409 ) Proceeds from disposals of property, plant and equipment — — 1 237 — 238 Purchases of investments — — (50 ) (199 ) — (249 ) Proceeds from sale of investment — — 54 — — 54 Other — — — (12 ) — (12 ) Net cash provided by (used in) investing activities — 1,447 (862 ) (3,573 ) (1,394 ) (4,382 ) Cash flows from financing activities: Intercompany contributions received — — 3,231 9,201 (12,432 ) — Dividend and distribution payments — (1,521 ) (1,521 ) (1,521 ) 3,042 (1,521 ) Net intercompany borrowings — (27 ) (2,125 ) (8,403 ) 10,555 — Repayment of debt — — — (856 ) — (856 ) Repurchases of common stock (347 ) — — — — (347 ) Issuance of common stock, net 10 102 — — — 112 Payment of capital lease obligations — — — (21 ) — (21 ) Net cash used in financing activities (337 ) (1,446 ) (415 ) (1,600 ) 1,165 (2,633 ) Net change in cash and cash equivalents — 301 (1,642 ) (1,676 ) — (3,017 ) Cash and cash equivalents at the beginning of period — 194 7,555 3,455 — 11,204 Cash and cash equivalents at end of period $ — $ 495 $ 5,913 $ 1,779 $ — $ 8,187 Condensed Consolidating Statements of Cash Flows Two Fiscal Quarters Ended April 30, 2017 Parent Guarantor Subsidiary Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income (loss) $ 679 $ 716 $ (1,707 ) $ (1,665 ) $ 2,693 $ 716 Adjustments to reconcile net income (loss) to net cash provided by operating activities (679 ) (463 ) 1,912 4,143 (2,693 ) 2,220 Net cash provided by operating activities — 253 205 2,478 — 2,936 Cash flows from investing activities: Net change in intercompany loans — 410 129 6,393 (6,932 ) — Acquisitions of businesses, net of cash acquired — — — (37 ) — (37 ) Proceeds from sale of business — — — 10 — 10 Purchases of property, plant and equipment — — (185 ) (396 ) — (581 ) Purchases of investments — — (200 ) — — (200 ) Other — — — (4 ) — (4 ) Net cash provided by (used in) investing activities — 410 (256 ) 5,966 (6,932 ) (812 ) Cash flows from financing activities: Net intercompany borrowings — 465 (6,004 ) (1,393 ) 6,932 — Proceeds from issuance of long-term debt — — 13,446 — — 13,446 Repayment of debt — — (5,705 ) (7,963 ) — (13,668 ) Payment of debt issuance costs — — (23 ) — — (23 ) Dividend and distribution payments — (868 ) — — — (868 ) Issuance of common stock, net — 150 — — — 150 Other — — (2 ) (2 ) — (4 ) Net cash provided by (used in) financing activities — (253 ) 1,712 (9,358 ) 6,932 (967 ) Net change in cash and cash equivalents — 410 1,661 (914 ) — 1,157 Cash and cash equivalents at the beginning of period — 53 1,092 1,952 — 3,097 Cash and cash equivalents at end of period $ — $ 463 $ 2,753 $ 1,038 $ — $ 4,254 |
Overview, Basis of Presentati34
Overview, Basis of Presentation and Significant Accounting Policies (Textuals) (Details) $ in Millions | 6 Months Ended | |
May 06, 2018USD ($)segment | Feb. 04, 2018USD ($) | |
Fiscal Period End | 52- or 53-week | |
Number of reportable segments | segment | 4 | |
Cumulative effect of new accounting pronouncement | $ 266 | |
Ordinary Shares [Member] | ||
Share Exchange Ratio | 1 | |
LP Units [Member] | ||
Share Exchange Ratio | 1 | |
Accounting Standards Update 2016-16 [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Cumulative effect of new accounting pronouncement | $ (67) | |
Accounting Standards Update 2016-16 [Member] | Other Noncurrent Assets [Member] | ||
Cumulative effect of new accounting pronouncement | (199) | |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative effect of new accounting pronouncement | 252 | |
Accounting Standards Update 2016-16 [Member] | Noncontrolling Interest [Member] | ||
Cumulative effect of new accounting pronouncement | 14 | |
AccountingStandardsUpdate2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative effect of new accounting pronouncement | 15 | |
AccountingStandardsUpdate2018-02 [Member] | Noncontrolling Interest [Member] | ||
Cumulative effect of new accounting pronouncement | 1 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | AccountingStandardsUpdate2018-02 [Member] | ||
Cumulative effect of new accounting pronouncement | $ 16 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | Nov. 17, 2017 | May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 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 | 37 | |||||
Proceeds from Sale of Property, Plant, and Equipment | 238 | 0 | |||||
Goodwill | $ 26,908 | 26,908 | $ 24,706 | ||||
Revenue, Net | 5,014 | $ 4,190 | 10,341 | $ 8,329 | |||
Brocade Communications Systems, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | $ 1,294 | ||||||
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 | $ 8 | 29 | |||||
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 | 2,189 | ||||||
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 | 79 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 6,958 | ||||||
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 | (370) | ||||||
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 | (2,170) | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 4,788 | ||||||
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 | 2,019 | ||||||
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 | 2,019 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Purchase accounting effect on inventory | $ 0 | $ 1 | $ 70 | $ 1 |
Brocade Communications Systems, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase accounting effect on inventory | 70 | |||
Pro forma net revenue | 5,017 | 4,662 | 10,464 | 9,301 |
Pro forma net income (loss) attributable to common stock | $ 3,744 | $ 442 | 10,077 | $ 554 |
Acquisition Costs, Period Cost | $ 76 |
Supplemental Financial Inform37
Supplemental Financial Information (Cash and Investments) (Details) - Fair Value, Inputs, Level 1 [Member] - Cash and Cash Equivalents [Member] - USD ($) $ in Millions | May 06, 2018 | Oct. 29, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Time Deposits, at Carrying Value | $ 4,362 | $ 6,002 |
Money Market Funds, at Carrying Value | $ 402 | $ 401 |
Supplemental Financial Inform38
Supplemental Financial Information (Inventory) (Details) - USD ($) $ in Millions | May 06, 2018 | Oct. 29, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 510 | $ 562 |
Work-in-process | 542 | 696 |
Raw materials | 183 | 189 |
Total inventory | $ 1,235 | $ 1,447 |
Supplemental Financial Inform39
Supplemental Financial Information Supplemental Financial Information (Other Current Assets) (Details) (Details) - USD ($) $ in Millions | May 06, 2018 | Oct. 29, 2017 |
Other Assets, Current [Abstract] | ||
Prepaid Expense, Current | $ 174 | $ 440 |
Other Receivables | 87 | 155 |
Other Assets | 42 | 129 |
Other Assets, Current | $ 303 | $ 724 |
Supplemental Financial Inform40
Supplemental Financial Information (Accrued rebates) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | |
AccruedRebateActivityRollForward [Abstract] | ||||
Beginning balance | $ 124 | $ 317 | ||
Charged as a reduction of revenue | $ 25 | $ 56 | 64 | 120 |
Reversal of unclaimed rebates | (10) | (36) | ||
Payments | (125) | (222) | ||
Ending balance | $ 53 | $ 179 | $ 53 | $ 179 |
Supplemental Financial Inform41
Supplemental Financial Information (Other LT Liabilities) (Details) - USD ($) $ in Millions | May 06, 2018 | Oct. 29, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |||
Deferred Tax Liabilities, Net, Noncurrent | [1] | $ 266 | $ 10,019 |
Unrecognized tax benefits including interest and penalties | [1],[2] | 2,700 | 1,011 |
Other Long Term Liabilities | 298 | 242 | |
Total other long-term liabilities | $ 3,264 | $ 11,272 | |
[1] | (a) Refer to Note 8. “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 | 6 Months Ended | |||
May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | Dec. 01, 2017 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Net revenue from discontinued operations | $ 0 | $ 3 | $ 18 | $ 5 | |
Loss from discontinued operation, before income tax | (3) | $ (4) | (18) | $ (9) | |
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 | $ 116 |
Supplemental Financial Inform43
Supplemental Financial Information (Supplemental Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | Oct. 29, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||||
Cash paid for interest | $ 1 | $ 1 | $ 233 | $ 103 | |
Cash paid for income taxes | $ 87 | $ 121 | 196 | $ 218 | |
Capital expenditures incurred but not yet paid | $ 27 | $ 122 |
Supplemental Financial Inform44
Supplemental Financial Information Supplemental Financial Information (AR Factoring) (Details) $ in Millions | 6 Months Ended |
May 06, 2018USD ($) | |
Statement of Financial Position [Abstract] | |
Financing Receivable, Significant Sales | $ 57 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets (Goodwill Rollforward) (Details) $ in Millions | 6 Months Ended |
May 06, 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 May 6, 2018 | 26,908 |
Wired Infrastructure | |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | 17,622 |
Balance as of May 6, 2018 | 17,705 |
Wireless Communications | |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | 5,945 |
Balance as of May 6, 2018 | 5,945 |
Enterprise Storage | |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | 995 |
Balance as of May 6, 2018 | 3,114 |
Industrial & Other | |
Goodwill [Roll Forward] | |
Balance as of October 29, 2017 | 144 |
Balance as of May 6, 2018 | 144 |
BrocadeMerger [Member] | |
Goodwill [Roll Forward] | |
Acquisition | 2,189 |
BrocadeMerger [Member] | Wired Infrastructure | |
Goodwill [Roll Forward] | |
Acquisition | 70 |
BrocadeMerger [Member] | Wireless Communications | |
Goodwill [Roll Forward] | |
Acquisition | 0 |
BrocadeMerger [Member] | Enterprise Storage | |
Goodwill [Roll Forward] | |
Acquisition | 2,119 |
BrocadeMerger [Member] | Industrial & Other | |
Goodwill [Roll Forward] | |
Acquisition | 0 |
Other Business Acquisitions [Member] | |
Goodwill [Roll Forward] | |
Acquisition | 13 |
Other Business Acquisitions [Member] | Wired Infrastructure | |
Goodwill [Roll Forward] | |
Acquisition | 13 |
Other Business Acquisitions [Member] | Wireless Communications | |
Goodwill [Roll Forward] | |
Acquisition | 0 |
Other Business Acquisitions [Member] | Enterprise Storage | |
Goodwill [Roll Forward] | |
Acquisition | 0 |
Other Business Acquisitions [Member] | Industrial & Other | |
Goodwill [Roll Forward] | |
Acquisition | $ 0 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions | May 06, 2018 | Oct. 29, 2017 |
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 18,291 | $ 17,627 |
Accumulated Amortization | (6,245) | (7,507) |
Net Book Value | 12,046 | 10,120 |
Intangible assets, gross | 18,591 | 18,339 |
Intangible assets, net book value | 12,346 | 10,832 |
IPR&D | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
IPR&D | 300 | 712 |
Purchased technology | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,770 | 12,724 |
Accumulated Amortization | (5,295) | (4,265) |
Net Book Value | 10,475 | 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 | (770) | (3,100) |
Net Book Value | 1,022 | 1,140 |
Trade names | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 578 | 528 |
Accumulated Amortization | (143) | (117) |
Net Book Value | 435 | 411 |
Other | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 151 | 135 |
Accumulated Amortization | (37) | (25) |
Net Book Value | $ 114 | $ 110 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets (Intangible asset amortization) (Details) - USD ($) $ in Millions | May 06, 2018 | Oct. 29, 2017 |
Finite-lived intangible assets future amortization expense | ||
2018 (remainder) | $ 1,669 | |
2,019 | 2,872 | |
2,020 | 2,424 | |
2,021 | 1,930 | |
2,022 | 1,425 | |
Thereafter | 1,726 | |
Net Book Value | $ 12,046 | $ 10,120 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets (Intangible asset life) (Details) | 6 Months Ended |
May 06, 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 Intangible Assets [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average remaining amortization period | 9 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 06, 2018 | Feb. 04, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | |
Earnings Per Share, Basic [Abstract] | |||||
Income from continuing operations | $ 3,736 | $ 468 | $ 10,317 | $ 725 | |
Less: Income from continuing operations attributable to noncontrolling interest | 15 | 24 | 352 | 37 | |
Income from continuing operations attributable to common stock | 3,721 | 444 | 9,965 | 688 | |
Loss from discontinued operations, net of income taxes | (3) | (4) | (18) | (9) | |
Less: Loss from discontinued operations, net of income taxes, attributable to noncontrolling interest | 0 | 0 | (1) | 0 | |
Loss from discontinued operations, net of income taxes, attributable to common stock | (3) | (4) | (17) | (9) | |
Net income attributable to common stock | $ 3,718 | $ 440 | $ 9,948 | $ 679 | |
Income per share from continuing operations | $ 8.84 | $ 1.10 | $ 24.01 | $ 1.72 | |
Loss per share from discontinued operations | (0.01) | (0.01) | (0.04) | (0.03) | |
Net income per share | $ 8.83 | $ 1.09 | $ 23.97 | $ 1.69 | |
Earnings Per Share, Diluted [Abstract] | |||||
Net income | $ 3,733 | $ 6,566 | $ 464 | $ 10,299 | $ 716 |
Income per share from continuing operations | $ 8.34 | $ 1.06 | $ 23.03 | $ 1.65 | |
Loss per share from discontinued operations | (0.01) | (0.01) | (0.04) | (0.02) | |
Net income per share | $ 8.33 | $ 1.05 | $ 22.99 | $ 1.63 | |
Earnings Per Share, Diluted, Other Disclosures [Abstract] | |||||
Weighted-average shares outstanding - basic | 421 | 403 | 415 | 401 | |
Dilutive effect of equity awards | 13 | 16 | 15 | 16 | |
Exchange of noncontrolling interest | 14 | 23 | 18 | 23 | |
Weighted-average shares outstanding - diluted | 448 | 442 | 448 | 440 |
Borrowings (Details)
Borrowings (Details) $ in Millions | 6 Months Ended | ||
May 06, 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 | (129) | (141) | |
Long-term Debt | 17,598 | 17,548 | |
Interest Payable, Current | $ 194 | $ 136 | |
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] | |||
Long-term Debt, Gross | $ 17,550 | $ 17,550 | |
Debt Instrument, Redemption Price, Percentage | 101.00% | ||
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 | |
Assumed BRCM Senior Notes [Member] | BRCM [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 139 | 139 | |
2020 Convertible Note [Member] | Brocade Communications Systems, Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 0.628% | ||
Interest Rate | 1.375% | ||
Long-term Debt, Gross | $ 38 | $ 0 | |
Debt Instrument, Face Amount | $ 575 | ||
Debt Instrument, Repurchased Face Amount | 537 | ||
Notes Assumed | $ 548 | ||
BRCD 2023 Senior Notes [Member] | Brocade Communications Systems, Inc. [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate | 4.625% | ||
Debt Instrument, Face Amount | $ 300 | ||
Repayments of assumed debt | $ 308 | ||
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 | $ 17,024 | ||
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 par | 1,018 | ||
Debt Instrument, Redemption, Period Two [Member] | 2020 Convertible Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Redemption Price, per $1000 par | 812 |
Borrowings (Future Principal Pa
Borrowings (Future Principal Payments) (Details) $ in Millions | May 06, 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 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
May 06, 2018USD ($)$ / sharesshares | Apr. 30, 2017USD ($)$ / shares | May 06, 2018USD ($)$ / sharesshares | Apr. 30, 2017USD ($)$ / shares | Apr. 04, 2018 | Oct. 29, 2017 | |
Class of Stock [Line Items] | ||||||
Common Stock Issued Upon the Conversion of LP Units | shares | 22 | |||||
Cash Dividends and Distributions Paid per Share/Unit | $ / shares | $ 1.75 | $ 1.02 | $ 3.50 | $ 2.04 | ||
Cash Dividends Paid to Stockholders | $ 727 | $ 414 | $ 1,444 | $ 822 | ||
Cash Distribution Paid to Limited Partners | 39 | $ 23 | 77 | $ 46 | ||
Stock Repurchase Program, Authorized Amount | $ 12,000 | $ 12,000 | ||||
Stock Repurchase Program Expiration Date | Nov. 3, 2019 | |||||
Stock Repurchased and Retired During Period, Shares | shares | 1.5 | |||||
Stock Repurchased, Average Cost Per Share | $ / shares | $ 230.50 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 11,653 | $ 11,653 | ||||
Ordinary Shares [Member] | ||||||
Class of Stock [Line Items] | ||||||
Share Exchange Ratio | 1 | |||||
LP Units [Member] | ||||||
Class of Stock [Line Items] | ||||||
Share Exchange Ratio | 1 | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | 5.00% |
Stockholders' Equity (Stock-bas
Stockholders' Equity (Stock-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | |
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based Compensation Expense | $ 296 | $ 216 | $ 595 | $ 417 |
Cost of products sold | ||||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based Compensation Expense | 21 | 15 | 41 | 29 |
Research and development | ||||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based Compensation Expense | 205 | 150 | 408 | 291 |
Selling, general and administrative | ||||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based Compensation Expense | $ 70 | $ 51 | $ 146 | $ 97 |
Stockholders' Equity (RSU Activ
Stockholders' Equity (RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended |
May 06, 2018USD ($)$ / sharesshares | |
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | |
Fair value of RSUs vested during the period | $ | $ 1,355 |
Total unrecognized compensation cost, RSUs and market based RSUs | $ | $ 3,048 |
Period for recognition | 3 years 1 month 23 days |
Stock-based Compensation Arrangement by Stock-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance (shares) | shares | 18 |
Granted (shares) | shares | 7 |
Vested (shares) | shares | (5) |
Forfeited (shares) | shares | (1) |
Ending Balance (shares) | shares | 19 |
Stock-based Compensation Arrangement by Stock-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 | 240.87 |
Restricted stock units vested, weighted average grant date fair value per share | $ / shares | 155.45 |
Restricted stock units, cancelled, weighted average grant date fair value | $ / shares | 161.95 |
Ending balance, weighted average grant-date fair value per share | $ / shares | $ 194 |
Stockholders' Equity (Option Ac
Stockholders' Equity (Option Activity) (Details) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | |
May 06, 2018USD ($)$ / sharesshares | ||
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | ||
Threshold for reporting in the equity award activity table | 0.5 | |
Employee Stock Option [Member] | ||
Stock-based Compensation Arrangement by Stock-based Payment Award [Line Items] | ||
Total unrecognized compensation cost, stock options | $ | $ 3 | |
Period for recognition | 5 months 18 days | |
Stock-based Compensation Arrangement by Stock-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning Balance (shares) | 10 | |
Exercised (shares) | (1) | [1] |
Cancelled (shares) | 0 | [1] |
Ending Balance (shares) | 9 | |
Fully vested (shares) | 8 | |
Fully vested and expected to vest (shares) | 9 | |
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 | 45.76 | |
Cancelled weighted average exercise price per share | $ / shares | 74.66 | |
Ending balance weighted average exercise price per share | $ / shares | 50.08 | |
Vested, weighted-average exercise price per share (in dollars per share) | $ / shares | 48.96 | |
Vested and expected to vest, weighted-average exercise price per share (in dollars per share) | $ / shares | $ 50.08 | |
Additional Option Disclosures | ||
Total intrinsic value of options exercised | $ | $ 318 | |
Outstanding, weighted-average remaining contractual life (years) | 2 years 4 months 29 days | |
Outstanding, aggregate intrinsic value | $ | $ 1,593 | |
Vested, weighted-average remaining contractual life (years) | 2 years 4 months 17 days | |
Vested, aggregate intrinsic value | $ | $ 1,543 | |
Vested and expected to vest, weighted-average remaining contractual life (years) | 2 years 4 months 29 days | |
Vested and expected to vest, aggregate intrinsic value | $ | $ 1,593 | |
[1] | * Represents fewer than 0.5 million shares. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | Oct. 29, 2017 | |
Income Tax Contingency [Line Items] | |||||
Benefit from income taxes | $ (2,637) | $ (103) | $ (8,423) | $ (93) | |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting Unrecognized Tax Benefit Related To Accumulated Foreign Earnings Provisional Income Tax Payable | 1,063 | ||||
Tax Cuts and Jobs Act of 2017, Provisional Tax Benefit | 7,303 | ||||
Tax Cuts and Jobs Act of 2017, Remeasurement of Deferred Assets and Liabilities to Reverse Future | 92 | ||||
Tax Cuts and Jobs Act of 2017, Transition Tax Benefit | 7,212 | ||||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 10,392 | 10,392 | |||
Tax Cuts And Jobs Act Of 2017, Transition Tax For Accumulated Foreign Earnings, Provisional Income Tax Payable | 2,116 | ||||
Tax Cuts And Jobs Act Of 2017, unrecognized tax benefit related to Transition Tax For Accumulated Foreign Earnings, Provisional Income Tax Payable | 1,116 | ||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting Related to Transition Tax and Unrecognized Tax Benefit Related To Accumulated Foreign Earnings Provisional Income Tax Payable | 1,494 | ||||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting Related To Transition Tax for Accumulated Foreign Earnings Provisional Income Tax Payable | 431 | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 127 | $ 139 | 155 | $ 181 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | 1,174 | ||||
Unrecognized Tax Benefits | 3,430 | 3,430 | $ 2,256 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 155 | 155 | 132 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 3,586 | 3,586 | $ 2,388 | ||
Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Unrecognized tax benefits that may be recognized | 257 | $ 257 | |||
Pre Tax Reform Tax Rate [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||||
Latest Tax Year [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 | $ 845 | |||
remeasurement of withholding taxes on undistributed earnings [Member] | |||||
Income Tax Contingency [Line Items] | |||||
increase (decrease) in deferred tax liability | 1,162 | ||||
U.S. tax provision on accumulated foreign earnings and profit [Member] | |||||
Income Tax Contingency [Line Items] | |||||
increase (decrease) in deferred tax liability | $ 91 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
May 06, 2018USD ($)Customer | Apr. 30, 2017USD ($)Customer | May 06, 2018USD ($)segmentCustomer | Apr. 30, 2017USD ($)Customer | Oct. 29, 2017Customer | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 4 | ||||
Net revenue | $ 5,014 | $ 4,190 | $ 10,341 | $ 8,329 | |
Operating Income (Loss) | 1,201 | 474 | 2,144 | 980 | |
Wireless Communications | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | 1,294 | 1,150 | 3,504 | 2,325 | |
Operating Income (Loss) | 522 | 414 | 1,581 | 841 | |
Wired Infrastructure | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | 2,295 | 2,111 | 4,170 | 4,195 | |
Operating Income (Loss) | 1,058 | 937 | 1,845 | 1,870 | |
Enterprise storage | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | 1,162 | 712 | 2,153 | 1,419 | |
Operating Income (Loss) | 720 | 382 | 1,299 | 757 | |
Industrial & Other | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | 263 | 217 | 514 | 390 | |
Operating Income (Loss) | 152 | 109 | 294 | 170 | |
Unallocated expenses | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income (Loss) | $ (1,251) | $ (1,368) | $ (2,875) | $ (2,658) | |
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 | 0 | 1 | 1 | 1 | |
Major Customer One | Customer Concentration Risk | Accounts Receivable [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 13.00% | 17.00% | |||
Major Customer One | Customer Concentration Risk | Sales | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 13.00% | 12.00% | 14.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 06, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | Oct. 29, 2017 | |
Related Party Transactions [Abstract] | |||||
Total net revenue | $ 200 | $ 71 | $ 382 | $ 148 | |
Total costs and expenses, including inventory purchases | 31 | $ 46 | 67 | $ 65 | |
Total receivables | 76 | 76 | $ 31 | ||
Total payables | $ 8 | $ 8 | $ 12 |
Commitments and Contingencies59
Commitments and Contingencies (Details) $ in Millions | May 06, 2018USD ($) |
Debt principal, interest and fees | |
Debt Principal, Interest and Fees, Total | $ 21,371 |
Debt Principal, Interest and Fees, due in 2018 remainder | 430 |
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 | 931 |
Purchase Commitments, due in 2018 remainder | 843 |
Purchase Commitments, due in 2019 | 69 |
Purchase Commitments, due in 2020 | 18 |
Purchase Commitments, due in 2021 | 1 |
Purchase Commitments, due in 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 | May 06, 2018USD ($)lawsuit | May 01, 2016lawsuit | Oct. 29, 2017USD ($) | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |||||||||||
Unrecognized tax benefits including interest and penalties | $ | [1],[2] | $ 2,700 | $ 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 8. “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 | 6 Months Ended | |||
May 06, 2018USD ($) | Apr. 30, 2017USD ($) | May 06, 2018USD ($)employees | Apr. 30, 2017USD ($) | ||
Restructuring Reserve [Roll Forward] | |||||
Balance as of October 29, 2017 | $ 45 | ||||
Restructuring charges (a) | [1] | 190 | |||
Utilization | (176) | ||||
Balance as of May 6, 2018 (b) | [2] | $ 59 | 59 | ||
Impairment of Long-Lived Assets Held-for-use | 6 | 12 | |||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ 15 | $ 25 | |||
Employee Termination Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Balance as of October 29, 2017 | 28 | ||||
Restructuring charges (a) | [1] | 129 | |||
Utilization | (121) | ||||
Balance as of May 6, 2018 (b) | [2] | 36 | $ 36 | ||
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] | 61 | |||
Utilization | (55) | ||||
Balance as of May 6, 2018 (b) | [2] | 23 | $ 23 | ||
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 | 1,100 | ||||
Restructuring Charges | 35 | $ 143 | |||
Broadcom Transaction [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Charges | $ 14 | $ 22 | 45 | $ 64 | |
Discontinued Operations, Held-for-sale [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges (a) | $ 2 | ||||
[1] | (a) Included $2 million of restructuring expense related to discontinued operations recognized during the two fiscal quarters ended May 6, 2018, which was included in loss from discontinued operations in our condensed consolidated statements of operations. | ||||
[2] | (b) The majority of the employee termination costs balance is expected to be paid in the third quarter of fiscal year 2018. The leases and other exit costs balance is expected to be paid during the remaining terms of the leases, which extend through fiscal year 2025. |
Condensed Consolidating Finan62
Condensed Consolidating Financial Information (Balance Sheet) (Details) - USD ($) $ in Millions | May 06, 2018 | Feb. 04, 2018 | Oct. 29, 2017 | Apr. 30, 2017 | Oct. 30, 2016 | |
Current assets: | ||||||
Cash and cash equivalents | $ 8,187 | $ 11,204 | $ 4,254 | $ 3,097 | ||
Trade accounts receivable, net | 2,749 | 2,448 | ||||
Inventory | 1,235 | 1,447 | ||||
Intercompany receivable | 0 | 0 | ||||
Intercompany loan receivable | 0 | 0 | ||||
Other current assets | 303 | 724 | ||||
Total current assets | 12,474 | 15,823 | ||||
Property, plant and equipment, net | 2,720 | 2,599 | ||||
Goodwill | 26,908 | 24,706 | ||||
Intangible assets, net | 12,346 | 10,832 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany loan receivable, long-term | 0 | 0 | ||||
Other long-term assets | 488 | 458 | ||||
Total assets | 54,936 | 54,418 | ||||
Current liabilities: | ||||||
Accounts payable | 836 | 1,105 | ||||
Employee compensation and benefits | 417 | 626 | ||||
Current portion of long-term debt | 117 | 117 | ||||
Intercompany payable | 0 | 0 | ||||
Intercompany loan payable | 0 | 0 | ||||
Other current liabilities | 754 | 681 | ||||
Total current liabilities | 2,124 | 2,529 | ||||
Long-term liabilities: | ||||||
Long-term debt | 17,481 | 17,431 | ||||
Deferred tax liabilities | [1] | 266 | 10,019 | |||
Intercompany loan payable, long-term | 0 | 0 | ||||
Unrecognized tax benefits | [1],[2] | 2,700 | 1,011 | |||
Other Long Term Liabilities | 298 | 242 | ||||
Total liabilities | 22,869 | 31,232 | ||||
Stockholders' Equity Attributable to Parent | 32,067 | 20,285 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 32,067 | $ 29,081 | 23,186 | |||
Stockholders' equity attributable to noncontrolling interest | 0 | 2,901 | ||||
Total liabilities and stockholders’ equity | 54,936 | 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 | (3,102) | (620) | ||||
Intercompany loan receivable | (3,874) | (10,768) | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (6,976) | (11,388) | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Investment in subsidiaries | (196,600) | (135,185) | ||||
Intercompany loan receivable, long-term | (44,502) | (41,547) | ||||
Other long-term assets | 0 | 0 | ||||
Total assets | (248,078) | (188,120) | ||||
Current liabilities: | ||||||
Accounts payable | 0 | 0 | ||||
Employee compensation and benefits | 0 | 0 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Intercompany payable | (3,102) | (620) | ||||
Intercompany loan payable | (3,874) | (10,768) | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | (6,976) | (11,388) | ||||
Long-term liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Intercompany loan payable, long-term | (44,502) | (41,547) | ||||
Unrecognized tax benefits | 0 | 0 | ||||
Other Long Term Liabilities | 0 | 0 | ||||
Total liabilities | (51,478) | (52,935) | ||||
Stockholders' Equity Attributable to Parent | (135,185) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (196,600) | |||||
Stockholders' equity attributable to noncontrolling interest | 0 | |||||
Total liabilities and stockholders’ equity | (248,078) | (188,120) | ||||
Parent Guarantor [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Trade accounts receivable, net | 0 | 0 | ||||
Inventory | 0 | 0 | ||||
Intercompany receivable | 10 | 0 | ||||
Intercompany loan receivable | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 10 | 0 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Investment in subsidiaries | 32,405 | 20,285 | ||||
Intercompany loan receivable, long-term | 0 | 0 | ||||
Other long-term assets | 0 | 0 | ||||
Total assets | 32,415 | 20,285 | ||||
Current liabilities: | ||||||
Accounts payable | 2 | 0 | ||||
Employee compensation and benefits | 0 | 0 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Intercompany payable | 346 | 0 | ||||
Intercompany loan payable | 0 | 0 | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | 348 | 0 | ||||
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 | 348 | 0 | ||||
Stockholders' Equity Attributable to Parent | 20,285 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 32,067 | |||||
Stockholders' equity attributable to noncontrolling interest | 0 | |||||
Total liabilities and stockholders’ equity | 32,415 | 20,285 | ||||
Guarantor Subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 495 | 194 | 463 | 53 | ||
Trade accounts receivable, net | 0 | 0 | ||||
Inventory | 0 | 0 | ||||
Intercompany receivable | 6 | 32 | ||||
Intercompany loan receivable | 0 | 28 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | 501 | 254 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Investment in subsidiaries | 32,413 | 23,112 | ||||
Intercompany loan receivable, long-term | 0 | 0 | ||||
Other long-term assets | 0 | 0 | ||||
Total assets | 32,914 | 23,366 | ||||
Current liabilities: | ||||||
Accounts payable | 22 | 7 | ||||
Employee compensation and benefits | 0 | 0 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Intercompany payable | 463 | 123 | ||||
Intercompany loan payable | 0 | 50 | ||||
Other current liabilities | 0 | 0 | ||||
Total current liabilities | 485 | 180 | ||||
Long-term liabilities: | ||||||
Long-term debt | 0 | 0 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Intercompany loan payable, long-term | 21 | 0 | ||||
Unrecognized tax benefits | 0 | 0 | ||||
Other Long Term Liabilities | 0 | 0 | ||||
Total liabilities | 506 | 180 | ||||
Stockholders' Equity Attributable to Parent | 20,285 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 32,408 | |||||
Stockholders' equity attributable to noncontrolling interest | 2,901 | |||||
Total liabilities and stockholders’ equity | 32,914 | 23,366 | ||||
Subsidiaries Issuers [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 5,913 | 7,555 | 2,753 | 1,092 | ||
Trade accounts receivable, net | 0 | 0 | ||||
Inventory | 0 | 0 | ||||
Intercompany receivable | 1,693 | 279 | ||||
Intercompany loan receivable | 1,320 | 1,891 | ||||
Other current assets | 37 | 350 | ||||
Total current assets | 8,963 | 10,075 | ||||
Property, plant and equipment, net | 241 | 207 | ||||
Goodwill | 1,360 | 1,360 | ||||
Intangible assets, net | 0 | 0 | ||||
Investment in subsidiaries | 35,187 | 28,049 | ||||
Intercompany loan receivable, long-term | 43,565 | 41,547 | ||||
Other long-term assets | 27 | 213 | ||||
Total assets | 89,343 | 81,451 | ||||
Current liabilities: | ||||||
Accounts payable | 38 | 72 | ||||
Employee compensation and benefits | 137 | 274 | ||||
Current portion of long-term debt | 117 | 117 | ||||
Intercompany payable | 1,158 | 186 | ||||
Intercompany loan payable | 2,554 | 8,799 | ||||
Other current liabilities | 677 | 254 | ||||
Total current liabilities | 4,681 | 9,702 | ||||
Long-term liabilities: | ||||||
Long-term debt | 17,444 | 17,431 | ||||
Deferred tax liabilities | 5 | 10,293 | ||||
Intercompany loan payable, long-term | 915 | 0 | ||||
Unrecognized tax benefits | 1,941 | 497 | ||||
Other Long Term Liabilities | 163 | 76 | ||||
Total liabilities | 25,149 | 37,999 | ||||
Stockholders' Equity Attributable to Parent | 43,452 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 64,194 | |||||
Stockholders' equity attributable to noncontrolling interest | 0 | |||||
Total liabilities and stockholders’ equity | 89,343 | 81,451 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 1,779 | 3,455 | $ 1,038 | $ 1,952 | ||
Trade accounts receivable, net | 2,749 | 2,448 | ||||
Inventory | 1,235 | 1,447 | ||||
Intercompany receivable | 1,393 | 309 | ||||
Intercompany loan receivable | 2,554 | 8,849 | ||||
Other current assets | 266 | 374 | ||||
Total current assets | 9,976 | 16,882 | ||||
Property, plant and equipment, net | 2,479 | 2,392 | ||||
Goodwill | 25,548 | 23,346 | ||||
Intangible assets, net | 12,346 | 10,832 | ||||
Investment in subsidiaries | 96,595 | 63,739 | ||||
Intercompany loan receivable, long-term | 937 | 0 | ||||
Other long-term assets | 461 | 245 | ||||
Total assets | 148,342 | 117,436 | ||||
Current liabilities: | ||||||
Accounts payable | 774 | 1,026 | ||||
Employee compensation and benefits | 280 | 352 | ||||
Current portion of long-term debt | 0 | 0 | ||||
Intercompany payable | 1,135 | 311 | ||||
Intercompany loan payable | 1,320 | 1,919 | ||||
Other current liabilities | 77 | 427 | ||||
Total current liabilities | 3,586 | 4,035 | ||||
Long-term liabilities: | ||||||
Long-term debt | 37 | 0 | ||||
Deferred tax liabilities | 261 | (274) | ||||
Intercompany loan payable, long-term | 43,566 | 41,547 | ||||
Unrecognized tax benefits | 759 | 514 | ||||
Other Long Term Liabilities | 135 | 166 | ||||
Total liabilities | 48,344 | 45,988 | ||||
Stockholders' Equity Attributable to Parent | 71,448 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 99,998 | |||||
Stockholders' equity attributable to noncontrolling interest | 0 | |||||
Total liabilities and stockholders’ equity | $ 148,342 | $ 117,436 | ||||
[1] | (a) Refer to Note 8. “Income Taxes” for additional information regarding these balances. | |||||
[2] | (b) Includes accrued interest and penalties. |
Condensed Consolidating Finan63
Condensed Consolidating Financial Information (Statements of Operations and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 06, 2018 | Feb. 04, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||
Net revenue | $ 5,014 | $ 4,190 | $ 10,341 | $ 8,329 | |
Intercompany revenue | 0 | 0 | 0 | 0 | |
Total revenue | 5,014 | 4,190 | 10,341 | 8,329 | |
Cost of products sold: | |||||
Cost of products sold | 1,696 | 1,564 | 3,595 | 3,137 | |
Intercompany cost of products sold | 0 | 0 | 0 | 0 | |
Purchase accounting effect on inventory | 0 | 1 | 70 | 1 | |
Amortization of acquisition-related intangible assets | 765 | 639 | 1,480 | 1,198 | |
Restructuring charges | 2 | 10 | 17 | 16 | |
Total cost of products sold | 2,463 | 2,214 | 5,162 | 4,352 | |
Gross margin | 2,551 | 1,976 | 5,179 | 3,977 | |
Research and development | 936 | 829 | 1,861 | 1,637 | |
Intercompany operating expense | 0 | 0 | 0 | 0 | |
Selling, general and administrative | 294 | 204 | 585 | 405 | |
Amortization of acquisition-related intangible assets | 67 | 442 | 406 | 882 | |
Restructuring, impairment and disposal charges | 53 | 27 | 183 | 73 | |
Total operating expenses | 1,350 | 1,502 | 3,035 | 2,997 | |
Operating income | 1,201 | 474 | 2,144 | 980 | |
Interest expense | (148) | (112) | (331) | (223) | |
Intercompany interest expense | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | 0 | 0 | (159) | |
Other income, net | 46 | 3 | 81 | 34 | |
Intercompany interest income | 0 | 0 | 0 | 0 | |
Intercompany other income (expense), net | 0 | 0 | 0 | 0 | |
Income from continuing operations before income taxes | 1,099 | 365 | 1,894 | 632 | |
Benefit from income taxes | (2,637) | (103) | (8,423) | (93) | |
Income from continuing operations | 3,736 | 468 | 10,317 | 725 | |
Earnings in (loss from) subsidiaries | 0 | 0 | 0 | 0 | |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 3,736 | 468 | 10,317 | 725 | |
Income (loss) from discontinued operations, net of income taxes | (3) | (4) | (18) | (9) | |
Net income | 3,733 | $ 6,566 | 464 | 10,299 | 716 |
Net income (loss) attributable to noncontrolling interest | 15 | 24 | 351 | 37 | |
Net Income (Loss) Attributable to Parent | 3,718 | 440 | 9,948 | 679 | |
Other Comprehensive Income | |||||
Net income (loss) | 3,733 | 6,566 | 464 | 10,299 | 716 |
Change in unrealized gain on available-for-sale investments | (9) | 0 | 0 | 0 | |
Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | 1 | 1 | 1 | 1 | |
Other comprehensive income (loss) | (8) | $ 9 | 1 | 1 | 1 |
Comprehensive income | 3,725 | 465 | 10,300 | 717 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 15 | 24 | 351 | 37 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 3,710 | 441 | 9,949 | 680 | |
Eliminations [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net revenue | 0 | 0 | 0 | 0 | |
Intercompany revenue | (566) | (541) | (1,150) | (919) | |
Total revenue | (566) | (541) | (1,150) | (919) | |
Cost of products sold: | |||||
Cost of products sold | 0 | 0 | 0 | 0 | |
Intercompany cost of products sold | (37) | (63) | (71) | (110) | |
Purchase accounting effect on inventory | 0 | 0 | 0 | ||
Amortization of acquisition-related intangible assets | 0 | 0 | 0 | 0 | |
Restructuring charges | 0 | 0 | 0 | 0 | |
Total cost of products sold | (37) | (63) | (71) | (110) | |
Gross margin | (529) | (478) | (1,079) | (809) | |
Research and development | 0 | 0 | 0 | 0 | |
Intercompany operating expense | (529) | (478) | (1,079) | (809) | |
Selling, general and administrative | 0 | 0 | 0 | 0 | |
Amortization of acquisition-related intangible assets | 0 | 0 | 0 | 0 | |
Restructuring, impairment and disposal charges | 0 | 0 | 0 | 0 | |
Total operating expenses | (529) | (478) | (1,079) | (809) | |
Operating income | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Intercompany interest expense | 600 | 990 | 1,233 | 1,069 | |
Loss on extinguishment of debt | 0 | ||||
Other income, net | 0 | 0 | 0 | 0 | |
Intercompany interest income | (600) | (990) | (1,233) | (1,069) | |
Intercompany other income (expense), net | 0 | 0 | 0 | 0 | |
Income from continuing operations before income taxes | 0 | 0 | 0 | 0 | |
Benefit from income taxes | 0 | 0 | 0 | 0 | |
Income from continuing operations | 0 | 0 | 0 | 0 | |
Earnings in (loss from) subsidiaries | (21,412) | 2,493 | (57,720) | 2,693 | |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | (21,412) | 2,493 | (57,720) | 2,693 | |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income | (21,412) | 2,493 | (57,720) | 2,693 | |
Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
Net Income (Loss) Attributable to Parent | (21,412) | 2,493 | (57,720) | 2,693 | |
Other Comprehensive Income | |||||
Net income (loss) | (21,412) | 2,493 | (57,720) | 2,693 | |
Change in unrealized gain on available-for-sale investments | 0 | ||||
Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Comprehensive income | (21,412) | 2,493 | (57,720) | 2,693 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (21,412) | 2,493 | (57,720) | 2,693 | |
Parent Guarantor [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net revenue | 0 | 0 | 0 | 0 | |
Intercompany revenue | 0 | 0 | 0 | 0 | |
Total revenue | 0 | 0 | 0 | 0 | |
Cost of products sold: | |||||
Cost of products sold | 0 | 0 | 0 | 0 | |
Intercompany cost of products sold | 0 | 0 | 0 | 0 | |
Purchase accounting effect on inventory | 0 | 0 | 0 | ||
Amortization of acquisition-related intangible assets | 0 | 0 | 0 | 0 | |
Restructuring charges | 0 | 0 | 0 | 0 | |
Total cost of products sold | 0 | 0 | 0 | 0 | |
Gross margin | 0 | 0 | 0 | 0 | |
Research and development | 0 | 0 | 0 | 0 | |
Intercompany operating expense | 0 | 0 | 0 | 0 | |
Selling, general and administrative | 2 | 0 | 2 | 0 | |
Amortization of acquisition-related intangible assets | 0 | 0 | 0 | 0 | |
Restructuring, impairment and disposal charges | 0 | 0 | 0 | 0 | |
Total operating expenses | 2 | 0 | 2 | 0 | |
Operating income | (2) | 0 | (2) | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Intercompany interest expense | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | ||||
Other income, net | 0 | 0 | 0 | 0 | |
Intercompany interest income | 0 | 0 | 0 | 0 | |
Intercompany other income (expense), net | 0 | 0 | 0 | 0 | |
Income from continuing operations before income taxes | (2) | 0 | (2) | 0 | |
Benefit from income taxes | 0 | 0 | 0 | 0 | |
Income from continuing operations | (2) | 0 | (2) | 0 | |
Earnings in (loss from) subsidiaries | 3,720 | 440 | 9,950 | 679 | |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 3,718 | 440 | 9,948 | 679 | |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income | 3,718 | 440 | 9,948 | 679 | |
Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
Net Income (Loss) Attributable to Parent | 3,718 | 440 | 9,948 | 679 | |
Other Comprehensive Income | |||||
Net income (loss) | 3,718 | 440 | 9,948 | 679 | |
Change in unrealized gain on available-for-sale investments | 0 | ||||
Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Comprehensive income | 3,718 | 440 | 9,948 | 679 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 3,718 | 440 | 9,948 | 679 | |
Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net revenue | 0 | 0 | 0 | 0 | |
Intercompany revenue | 0 | 0 | 0 | 0 | |
Total revenue | 0 | 0 | 0 | 0 | |
Cost of products sold: | |||||
Cost of products sold | 0 | 0 | 0 | 0 | |
Intercompany cost of products sold | 0 | 0 | 0 | 0 | |
Purchase accounting effect on inventory | 0 | 0 | 0 | ||
Amortization of acquisition-related intangible assets | 0 | 0 | 0 | 0 | |
Restructuring charges | 0 | 0 | 0 | 0 | |
Total cost of products sold | 0 | 0 | 0 | 0 | |
Gross margin | 0 | 0 | 0 | 0 | |
Research and development | 0 | 0 | 0 | 0 | |
Intercompany operating expense | 0 | 0 | 0 | 0 | |
Selling, general and administrative | 50 | 6 | 84 | 13 | |
Amortization of acquisition-related intangible assets | 0 | 0 | 0 | 0 | |
Restructuring, impairment and disposal charges | 0 | 0 | 0 | 0 | |
Total operating expenses | 50 | 6 | 84 | 13 | |
Operating income | (50) | (6) | (84) | (13) | |
Interest expense | 0 | 0 | 0 | 0 | |
Intercompany interest expense | 0 | (2) | 0 | (3) | |
Loss on extinguishment of debt | 0 | ||||
Other income, net | 1 | 1 | 2 | 1 | |
Intercompany interest income | 0 | 0 | 0 | 1 | |
Intercompany other income (expense), net | 50 | 812 | 229 | 1,013 | |
Income from continuing operations before income taxes | 1 | 805 | 147 | 999 | |
Benefit from income taxes | 0 | 0 | 0 | 0 | |
Income from continuing operations | 1 | 805 | 147 | 999 | |
Earnings in (loss from) subsidiaries | 3,734 | (341) | 10,154 | (283) | |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 3,735 | 464 | 10,301 | 716 | |
Income (loss) from discontinued operations, net of income taxes | 0 | 0 | 0 | 0 | |
Net income | 3,735 | 464 | 10,301 | 716 | |
Net income (loss) attributable to noncontrolling interest | 15 | 24 | 351 | 37 | |
Net Income (Loss) Attributable to Parent | 3,720 | 440 | 9,950 | 679 | |
Other Comprehensive Income | |||||
Net income (loss) | 3,735 | 464 | 10,301 | 716 | |
Change in unrealized gain on available-for-sale investments | 0 | ||||
Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Comprehensive income | 3,735 | 464 | 10,301 | 716 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 15 | 24 | 351 | 37 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 3,720 | 440 | 9,950 | 679 | |
Subsidiaries Issuers [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net revenue | 0 | 1 | 0 | 74 | |
Intercompany revenue | 566 | 529 | 1,150 | 910 | |
Total revenue | 566 | 530 | 1,150 | 984 | |
Cost of products sold: | |||||
Cost of products sold | 35 | 42 | 67 | 87 | |
Intercompany cost of products sold | 0 | 0 | 0 | (12) | |
Purchase accounting effect on inventory | 0 | 0 | 0 | ||
Amortization of acquisition-related intangible assets | 0 | 0 | 0 | 7 | |
Restructuring charges | 0 | 5 | 2 | 8 | |
Total cost of products sold | 35 | 47 | 69 | 90 | |
Gross margin | 531 | 483 | 1,081 | 894 | |
Research and development | 407 | 345 | 813 | 713 | |
Intercompany operating expense | 0 | 0 | 0 | (80) | |
Selling, general and administrative | 72 | 81 | 157 | 175 | |
Amortization of acquisition-related intangible assets | 0 | 0 | 0 | 7 | |
Restructuring, impairment and disposal charges | 11 | 3 | 44 | 18 | |
Total operating expenses | 490 | 429 | 1,014 | 833 | |
Operating income | 41 | 54 | 67 | 61 | |
Interest expense | (148) | (118) | (329) | (169) | |
Intercompany interest expense | (81) | (16) | (140) | (90) | |
Loss on extinguishment of debt | (52) | ||||
Other income, net | 28 | 8 | 47 | 6 | |
Intercompany interest income | 519 | 972 | 1,093 | 976 | |
Intercompany other income (expense), net | 0 | (413) | (57) | (479) | |
Income from continuing operations before income taxes | 359 | 487 | 681 | 253 | |
Benefit from income taxes | (2,521) | (139) | (7,981) | (109) | |
Income from continuing operations | 2,880 | 626 | 8,662 | 362 | |
Earnings in (loss from) subsidiaries | 3,680 | (1,830) | 9,503 | (2,061) | |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 6,560 | (1,204) | 18,165 | (1,699) | |
Income (loss) from discontinued operations, net of income taxes | (2) | 2 | (2) | (8) | |
Net income | 6,558 | (1,202) | 18,163 | (1,707) | |
Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
Net Income (Loss) Attributable to Parent | 6,558 | (1,202) | 18,163 | (1,707) | |
Other Comprehensive Income | |||||
Net income (loss) | 6,558 | (1,202) | 18,163 | (1,707) | |
Change in unrealized gain on available-for-sale investments | (9) | ||||
Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) | (9) | 0 | 0 | 0 | |
Comprehensive income | 6,549 | (1,202) | 18,163 | (1,707) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 6,549 | (1,202) | 18,163 | (1,707) | |
Non-Guarantor Subsidiaries [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Net revenue | 5,014 | 4,189 | 10,341 | 8,255 | |
Intercompany revenue | 0 | 12 | 0 | 9 | |
Total revenue | 5,014 | 4,201 | 10,341 | 8,264 | |
Cost of products sold: | |||||
Cost of products sold | 1,661 | 1,522 | 3,528 | 3,050 | |
Intercompany cost of products sold | 37 | 63 | 71 | 122 | |
Purchase accounting effect on inventory | 1 | 70 | 1 | ||
Amortization of acquisition-related intangible assets | 765 | 639 | 1,480 | 1,191 | |
Restructuring charges | 2 | 5 | 15 | 8 | |
Total cost of products sold | 2,465 | 2,230 | 5,164 | 4,372 | |
Gross margin | 2,549 | 1,971 | 5,177 | 3,892 | |
Research and development | 529 | 484 | 1,048 | 924 | |
Intercompany operating expense | 529 | 478 | 1,079 | 889 | |
Selling, general and administrative | 170 | 117 | 342 | 217 | |
Amortization of acquisition-related intangible assets | 67 | 442 | 406 | 875 | |
Restructuring, impairment and disposal charges | 42 | 24 | 139 | 55 | |
Total operating expenses | 1,337 | 1,545 | 3,014 | 2,960 | |
Operating income | 1,212 | 426 | 2,163 | 932 | |
Interest expense | 0 | 6 | (2) | (54) | |
Intercompany interest expense | (519) | (972) | (1,093) | (976) | |
Loss on extinguishment of debt | (107) | ||||
Other income, net | 17 | (6) | 32 | 27 | |
Intercompany interest income | 81 | 18 | 140 | 92 | |
Intercompany other income (expense), net | (50) | (399) | (172) | (534) | |
Income from continuing operations before income taxes | 741 | (927) | 1,068 | (620) | |
Benefit from income taxes | (116) | 36 | (442) | 16 | |
Income from continuing operations | 857 | (963) | 1,510 | (636) | |
Earnings in (loss from) subsidiaries | 10,278 | (762) | 28,113 | (1,028) | |
Income (loss) from continuing operations and earnings (loss) in subsidiaries | 11,135 | (1,725) | 29,623 | (1,664) | |
Income (loss) from discontinued operations, net of income taxes | (1) | (6) | (16) | (1) | |
Net income | 11,134 | (1,731) | 29,607 | (1,665) | |
Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
Net Income (Loss) Attributable to Parent | 11,134 | (1,731) | 29,607 | (1,665) | |
Other Comprehensive Income | |||||
Net income (loss) | 11,134 | (1,731) | 29,607 | (1,665) | |
Change in unrealized gain on available-for-sale investments | 0 | ||||
Amortization of actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans | 1 | 1 | 1 | 1 | |
Other comprehensive income (loss) | 1 | 1 | 1 | 1 | |
Comprehensive income | 11,135 | (1,730) | 29,608 | (1,664) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 11,135 | $ (1,730) | $ 29,608 | $ (1,664) |
Condensed Consolidating Finan64
Condensed Consolidating Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
May 06, 2018 | Feb. 04, 2018 | Apr. 30, 2017 | May 06, 2018 | Apr. 30, 2017 | |
Cash flows from operating activities: | |||||
Net income (loss) | $ 3,733 | $ 6,566 | $ 464 | $ 10,299 | $ 716 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (6,301) | 2,220 | |||
Net cash provided by operating activities | 3,998 | 2,936 | |||
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) | (37) | |||
Proceeds from sales of businesses | 782 | 10 | |||
Purchases of property, plant and equipment | (409) | (581) | |||
Proceeds from disposals of property, plant, and equipment | 238 | 0 | |||
Purchases of investments | (249) | (200) | |||
Proceeds from sale of investment | 54 | 0 | |||
Other | (12) | (4) | |||
Net cash used in investing activities | (4,382) | (812) | |||
Cash flows from financing activities: | |||||
Intercompany contribution received | 0 | ||||
Distributions paid to unit holders | (1,521) | ||||
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 | (23) | |||
Repurchases of common stock | (347) | 0 | |||
Dividend and distribution payments | (1,521) | (868) | |||
Proceeds from Issuance of Common Stock | 112 | 150 | |||
Repayments of Long-term Capital Lease Obligations | 21 | 4 | |||
Other | (4) | ||||
Net cash used in financing activities | (2,633) | (967) | |||
Net change in cash and cash equivalents | (3,017) | 1,157 | |||
Cash and cash equivalents at beginning of period | 11,204 | 11,204 | 3,097 | ||
Cash and cash equivalents at end of period | 8,187 | 4,254 | 8,187 | 4,254 | |
Eliminations [Member] | |||||
Cash flows from operating activities: | |||||
Net income (loss) | (21,412) | 2,493 | (57,720) | 2,693 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | 57,949 | (2,693) | |||
Net cash provided by operating activities | 229 | 0 | |||
Cash flows from investing activities: | |||||
Intercompany contributions paid | 12,203 | ||||
Distributions received from subsidiaries | (3,042) | ||||
Net change in intercompany loans | (10,555) | (6,932) | |||
Acquisitions of businesses, net of cash acquired | 0 | 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 | 0 | |||
Proceeds from sale of investment | 0 | ||||
Other | 0 | 0 | |||
Net cash used in investing activities | (1,394) | (6,932) | |||
Cash flows from financing activities: | |||||
Intercompany contribution received | (12,432) | ||||
Distributions paid to unit holders | 3,042 | ||||
Net intercompany borrowings | 10,555 | 6,932 | |||
Proceeds from issuance of long-term debt | 0 | ||||
Repayment of debt | 0 | 0 | |||
Payment of debt issuance costs | 0 | ||||
Repurchases of common stock | 0 | ||||
Dividend and distribution payments | 0 | ||||
Proceeds from Issuance of Common Stock | 0 | 0 | |||
Repayments of Long-term Capital Lease Obligations | 0 | ||||
Other | 0 | ||||
Net cash used in financing activities | 1,165 | 6,932 | |||
Net change in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | |
Parent Guarantor [Member] | |||||
Cash flows from operating activities: | |||||
Net income (loss) | 3,718 | 440 | 9,948 | 679 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (9,611) | (679) | |||
Net cash provided by operating activities | 337 | 0 | |||
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 | 0 | 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 | 0 | |||
Proceeds from sale of investment | 0 | ||||
Other | 0 | 0 | |||
Net cash used in investing activities | 0 | 0 | |||
Cash flows from financing activities: | |||||
Intercompany contribution received | 0 | ||||
Distributions paid to unit holders | 0 | ||||
Net intercompany borrowings | 0 | 0 | |||
Proceeds from issuance of long-term debt | 0 | ||||
Repayment of debt | 0 | 0 | |||
Payment of debt issuance costs | 0 | ||||
Repurchases of common stock | (347) | ||||
Dividend and distribution payments | 0 | ||||
Proceeds from Issuance of Common Stock | 10 | 0 | |||
Repayments of Long-term Capital Lease Obligations | 0 | ||||
Other | 0 | ||||
Net cash used in financing activities | (337) | 0 | |||
Net change in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | |
Guarantor Subsidiaries [Member] | |||||
Cash flows from operating activities: | |||||
Net income (loss) | 3,735 | 464 | 10,301 | 716 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (10,001) | (463) | |||
Net cash provided by operating activities | 300 | 253 | |||
Cash flows from investing activities: | |||||
Intercompany contributions paid | (102) | ||||
Distributions received from subsidiaries | 1,521 | ||||
Net change in intercompany loans | 28 | 410 | |||
Acquisitions of businesses, net of cash acquired | 0 | 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 | 0 | |||
Proceeds from sale of investment | 0 | ||||
Other | 0 | 0 | |||
Net cash used in investing activities | 1,447 | 410 | |||
Cash flows from financing activities: | |||||
Intercompany contribution received | 0 | ||||
Distributions paid to unit holders | (1,521) | ||||
Net intercompany borrowings | (27) | 465 | |||
Proceeds from issuance of long-term debt | 0 | ||||
Repayment of debt | 0 | ||||
Repayments of assumed debt | 0 | ||||
Payment of debt issuance costs | 0 | ||||
Repurchases of common stock | 0 | ||||
Dividend and distribution payments | (868) | ||||
Proceeds from Issuance of Common Stock | 102 | 150 | |||
Repayments of Long-term Capital Lease Obligations | 0 | ||||
Other | 0 | ||||
Net cash used in financing activities | (1,446) | (253) | |||
Net change in cash and cash equivalents | 301 | 410 | |||
Cash and cash equivalents at beginning of period | 194 | 194 | 53 | ||
Cash and cash equivalents at end of period | 495 | 463 | 495 | 463 | |
Subsidiaries Issuers [Member] | |||||
Cash flows from operating activities: | |||||
Net income (loss) | 6,558 | (1,202) | 18,163 | (1,707) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (18,528) | 1,912 | |||
Net cash provided by operating activities | (365) | 205 | |||
Cash flows from investing activities: | |||||
Intercompany contributions paid | (9,099) | ||||
Distributions received from subsidiaries | 0 | ||||
Net change in intercompany loans | 8,346 | 129 | |||
Acquisitions of businesses, net of cash acquired | 0 | 0 | |||
Proceeds from sales of businesses | 0 | 0 | |||
Purchases of property, plant and equipment | (114) | (185) | |||
Proceeds from disposals of property, plant, and equipment | 1 | ||||
Purchases of investments | (50) | (200) | |||
Proceeds from sale of investment | 54 | ||||
Other | 0 | 0 | |||
Net cash used in investing activities | (862) | (256) | |||
Cash flows from financing activities: | |||||
Intercompany contribution received | 3,231 | ||||
Distributions paid to unit holders | (1,521) | ||||
Net intercompany borrowings | (2,125) | (6,004) | |||
Proceeds from issuance of long-term debt | 13,446 | ||||
Repayment of debt | 0 | (5,705) | |||
Payment of debt issuance costs | (23) | ||||
Repurchases of common stock | 0 | ||||
Dividend and distribution payments | 0 | ||||
Proceeds from Issuance of Common Stock | 0 | 0 | |||
Repayments of Long-term Capital Lease Obligations | 0 | ||||
Other | (2) | ||||
Net cash used in financing activities | (415) | 1,712 | |||
Net change in cash and cash equivalents | (1,642) | 1,661 | |||
Cash and cash equivalents at beginning of period | 7,555 | 7,555 | 1,092 | ||
Cash and cash equivalents at end of period | 5,913 | 2,753 | 5,913 | 2,753 | |
Non-Guarantor Subsidiaries [Member] | |||||
Cash flows from operating activities: | |||||
Net income (loss) | 11,134 | (1,731) | 29,607 | (1,665) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | (26,110) | 4,143 | |||
Net cash provided by operating activities | 3,497 | 2,478 | |||
Cash flows from investing activities: | |||||
Intercompany contributions paid | (3,002) | ||||
Distributions received from subsidiaries | 1,521 | ||||
Net change in intercompany loans | 2,181 | 6,393 | |||
Acquisitions of businesses, net of cash acquired | (4,786) | (37) | |||
Proceeds from sales of businesses | 782 | 10 | |||
Purchases of property, plant and equipment | (295) | (396) | |||
Proceeds from disposals of property, plant, and equipment | 237 | ||||
Purchases of investments | (199) | 0 | |||
Proceeds from sale of investment | 0 | ||||
Other | (12) | (4) | |||
Net cash used in investing activities | (3,573) | 5,966 | |||
Cash flows from financing activities: | |||||
Intercompany contribution received | 9,201 | ||||
Distributions paid to unit holders | (1,521) | ||||
Net intercompany borrowings | (8,403) | (1,393) | |||
Proceeds from issuance of long-term debt | 0 | ||||
Repayment of debt | (856) | (7,963) | |||
Payment of debt issuance costs | 0 | ||||
Repurchases of common stock | 0 | ||||
Dividend and distribution payments | 0 | ||||
Proceeds from Issuance of Common Stock | 0 | 0 | |||
Repayments of Long-term Capital Lease Obligations | 21 | ||||
Other | (2) | ||||
Net cash used in financing activities | (1,600) | (9,358) | |||
Net change in cash and cash equivalents | (1,676) | (914) | |||
Cash and cash equivalents at beginning of period | $ 3,455 | 3,455 | 1,952 | ||
Cash and cash equivalents at end of period | $ 1,779 | $ 1,038 | $ 1,779 | $ 1,038 |
Subsequent Events - Cash Divide
Subsequent Events - Cash Dividends (Details) - Subsequent Event - $ / shares | Jun. 29, 2018 | Jun. 20, 2018 | Jun. 06, 2018 |
Dividends Payable [Line Items] | |||
Dividends payable, date declared | Jun. 6, 2018 | ||
Common Stock, Dividends, Per Share, Declared | $ 1.75 | ||
Dividends payable, date to be paid | Jun. 29, 2018 | ||
Dividends payable, date of record | Jun. 20, 2018 |