Condensed Consolidating Financial Information | As of November 4, 2018 , the 2017 Senior Notes were fully and unconditionally guaranteed, jointly and severally, on an unsecured, unsubordinated basis by Broadcom and Broadcom-Singapore. Substantially all of the 2017 Senior Notes have been registered with the SEC. During fiscal year 2019, we liquidated Broadcom-Singapore and de-registered the Partnership. BTI, a 100% -owned subsidiary of Broadcom, became a guarantor of the 2017 Senior Notes and entered into supplemental indentures with BRCM, Cayman Finance and the trustee of the 2017 Senior Notes. As a result, Broadcom-Singapore was released from its guarantee of the 2017 Senior Notes as Subsidiary Guarantor under each of their respective indentures in accordance with their terms. On May 15, 2019, Cayman Finance was merged into BTI, with BTI remaining as the surviving entity. In connection with this merger, BTI remains a guarantor and became a co-issuer of the 2017 Senior Notes. Accordingly, we updated the guarantor structure, which resulted in the following revised column headings: • Parent Guarantor (Broadcom) • Subsidiary Issuers (BTI and BRCM) • Non-Guarantor Subsidiaries (our other subsidiaries) We have applied the impacts of the change in guarantors and issuers retrospectively to all periods presented. The following tables set forth the condensed consolidating financial information for the Parent Guarantor, the Subsidiary Issuers, and the Non-Guarantor Subsidiaries for the periods presented. Investments in subsidiaries are accounted for under the equity method; accordingly, entries necessary to consolidate the Parent 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. Condensed Consolidating Balance Sheets November 3, 2019 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ 374 $ 613 $ 4,068 $ — $ 5,055 Trade accounts receivable, net — — 3,259 — 3,259 Inventory — — 874 — 874 Intercompany receivable 59 439 35 (533 ) — Intercompany loan receivable — 10,576 9,188 (19,764 ) — Other current assets 58 37 634 — 729 Total current assets 491 11,665 18,058 (20,297 ) 9,917 Long-term assets: Property, plant and equipment, net — 759 1,806 — 2,565 Goodwill — 1,360 35,354 — 36,714 Intangible assets, net — 76 17,478 — 17,554 Investment in subsidiaries 51,558 45,981 — (97,539 ) — Intercompany loan receivable, long-term — — 932 (932 ) — Other long-term assets 25 95 623 — 743 Total assets $ 52,074 $ 59,936 $ 74,251 $ (118,768 ) $ 67,493 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 24 $ 38 $ 793 $ — $ 855 Employee compensation and benefits — 179 462 — 641 Current portion of long-term debt — 2,750 37 — 2,787 Intercompany payable 32 4 497 (533 ) — Intercompany loan payable 13,709 4,935 1,120 (19,764 ) — Other current liabilities 25 186 2,405 — 2,616 Total current liabilities 13,790 8,092 5,314 (20,297 ) 6,899 Long-term liabilities: Long-term debt 13,440 14,731 1,840 — 30,011 Deferred tax liabilities (126 ) (a) (295 ) (a) 1,952 — 1,531 Intercompany loan payable, long-term — 932 — (932 ) — Unrecognized tax benefits — 2,422 847 — 3,269 Other long-term liabilities — 107 706 — 813 Total liabilities 27,104 25,989 10,659 (21,229 ) 42,523 Preferred stock dividend obligation 29 — — — 29 Total stockholders’ equity 24,941 33,947 63,592 (97,539 ) 24,941 Total liabilities and equity $ 52,074 $ 59,936 $ 74,251 $ (118,768 ) $ 67,493 ________________________________ (a) Amount represents net deferred tax assets that are offset by net deferred tax liabilities on a consolidated basis. Condensed Consolidating Balance Sheets November 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 2,461 $ 1,831 $ — $ 4,292 Trade accounts receivable, net — — 3,325 — 3,325 Inventory — — 1,124 — 1,124 Intercompany receivable 56 182 67 (305 ) — Intercompany loan receivable — 9,780 4,713 (14,493 ) — Other current assets 52 37 277 — 366 Total current assets 108 12,460 11,337 (14,798 ) 9,107 Long-term assets: Property, plant and equipment, net — 772 1,863 — 2,635 Goodwill — 1,360 25,553 — 26,913 Intangible assets, net — 84 10,678 — 10,762 Investment in subsidiaries 35,268 46,742 — (82,010 ) — Intercompany loan receivable, long-term — — 991 (991 ) — Other long-term assets — 250 457 — 707 Total assets $ 35,376 $ 61,668 $ 50,879 $ (97,799 ) $ 50,124 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 19 $ 44 $ 748 $ — $ 811 Employee compensation and benefits — 272 443 — 715 Intercompany payable 9 58 238 (305 ) — Intercompany loan payable 8,691 4,713 1,089 (14,493 ) — Other current liabilities — 219 593 — 812 Total current liabilities 8,719 5,306 3,111 (14,798 ) 2,338 Long-term liabilities: Long-term debt — 17,456 37 — 17,493 Deferred tax liabilities — (47 ) (a) 216 — 169 Intercompany loan payable, long-term — 991 — (991 ) — Unrecognized tax benefits — 2,563 525 — 3,088 Other long-term liabilities — 131 248 — 379 Total liabilities 8,719 26,400 4,137 (15,789 ) 23,467 Total stockholders’ equity 26,657 35,268 46,742 (82,010 ) 26,657 Total liabilities and equity $ 35,376 $ 61,668 $ 50,879 $ (97,799 ) $ 50,124 ________________________________ (a) Amount represents net deferred tax assets that are offset by net deferred tax liabilities on a consolidated basis. Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Year Ended November 3, 2019 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue: Products $ — $ — $ 18,117 $ — $ 18,117 Subscriptions and services — — 4,480 — 4,480 Intercompany revenue — 1,573 — (1,573 ) — Total net revenue — 1,573 22,597 (1,573 ) 22,597 Cost of revenue: Cost of products sold — 138 6,070 — 6,208 Cost of subscriptions and services — 15 500 — 515 Intercompany cost of products sold — — 122 (122 ) — Amortization of acquisition-related intangible assets — — 3,314 — 3,314 Restructuring charges — (7 ) 84 — 77 Total cost of revenue — 146 10,090 (122 ) 10,114 Gross margin — 1,427 12,507 (1,451 ) 12,483 Research and development — 1,885 2,811 — 4,696 Intercompany operating expense — — 1,451 (1,451 ) — Selling, general and administrative 129 324 1,256 — 1,709 Amortization of acquisition-related intangible assets — — 1,898 — 1,898 Restructuring, impairment and disposal charges — 17 719 — 736 Total operating expenses 129 2,226 8,135 (1,451 ) 9,039 Operating income (loss) (129 ) (799 ) 4,372 — 3,444 Interest expense (753 ) (591 ) (100 ) — (1,444 ) Intercompany interest expense (369 ) (162 ) (35 ) 566 — Other income, net 3 25 198 — 226 Intercompany interest income — 308 258 (566 ) — Intercompany other income (expense), net 893 — (893 ) — — Income (loss) from continuing operations before income taxes and earnings in subsidiaries (355 ) (1,219 ) 3,800 — 2,226 Provision for (benefit from) income taxes (277 ) 136 (369 ) — (510 ) Income (loss) from continuing operations before earnings in subsidiaries (78 ) (1,355 ) 4,169 — 2,736 Earnings in subsidiaries 2,802 5,299 — (8,101 ) — Income from continuing operations and earnings in subsidiaries 2,724 3,944 4,169 (8,101 ) 2,736 Loss from discontinued operations, net of income taxes — — (12 ) — (12 ) Net income $ 2,724 $ 3,944 $ 4,157 $ (8,101 ) $ 2,724 Net income $ 2,724 $ 3,944 $ 4,157 $ (8,101 ) $ 2,724 Other comprehensive loss, net of tax: Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — (24 ) — (24 ) Other comprehensive loss — — (24 ) — (24 ) Comprehensive income $ 2,724 $ 3,944 $ 4,133 $ (8,101 ) $ 2,700 Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Year Ended November 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue: Products $ — $ — $ 19,754 $ — $ 19,754 Subscriptions and services — — 1,094 — 1,094 Intercompany revenue — 1,924 — (1,924 ) — Total net revenue — 1,924 20,848 (1,924 ) 20,848 Cost of revenue: Cost of products sold — 120 6,804 — 6,924 Cost of subscriptions and services — 12 85 — 97 Intercompany cost of products sold — — 126 (126 ) — Purchase accounting effect on inventory — — 70 — 70 Amortization of acquisition-related intangible assets — — 3,004 — 3,004 Restructuring charges — 1 19 — 20 Total cost of revenue — 133 10,108 (126 ) 10,115 Gross margin — 1,791 10,740 (1,798 ) 10,733 Research and development — 1,651 2,117 — 3,768 Intercompany operating expense — — 1,798 (1,798 ) — Selling, general and administrative 31 297 728 — 1,056 Amortization of acquisition-related intangible assets — — 541 — 541 Restructuring, impairment and disposal charges — 53 166 — 219 Litigation settlements — 14 — — 14 Total operating expenses 31 2,015 5,350 (1,798 ) 5,598 Operating income (loss) (31 ) (224 ) 5,390 — 5,135 Interest expense — (626 ) (2 ) — (628 ) Intercompany interest expense (67 ) (199 ) (1,449 ) 1,715 — Impairment on investment — — (106 ) — (106 ) Other income, net — 88 56 — 144 Intercompany interest income — 1,516 199 (1,715 ) — Intercompany other income (expense), net 111 (56 ) (55 ) — — Income from continuing operations before income taxes and earnings in subsidiaries 13 499 4,033 — 4,545 Provision for (benefit from) income taxes 44 (7,878 ) (250 ) — (8,084 ) Income (loss) from continuing operations before earnings in subsidiaries (31 ) 8,377 4,283 — 12,629 Earnings in subsidiaries 12,290 4,266 — (16,556 ) — Income from continuing operations and earnings in subsidiaries 12,259 12,643 4,283 (16,556 ) 12,629 Loss from discontinued operations, net of income taxes — (2 ) (17 ) — (19 ) Net income 12,259 12,641 4,266 (16,556 ) 12,610 Net income attributable to noncontrolling interest — 351 — — 351 Net income attributable to common stock $ 12,259 $ 12,290 $ 4,266 $ (16,556 ) $ 12,259 Net income $ 12,259 $ 12,641 $ 4,266 $ (16,556 ) $ 12,610 Other comprehensive loss, net of tax: Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — (8 ) — (8 ) Other comprehensive loss — — (8 ) — (8 ) Comprehensive income 12,259 12,641 4,258 (16,556 ) 12,602 Comprehensive income attributable to noncontrolling interest — 351 — — 351 Comprehensive income attributable to Broadcom Inc. stockholders $ 12,259 $ 12,290 $ 4,258 $ (16,556 ) $ 12,251 Condensed Consolidating Statements of Operations and Comprehensive Income Fiscal Year Ended October 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Net revenue: Products $ — $ 71 $ 16,962 $ — $ 17,033 Subscriptions and services — 2 601 — 603 Intercompany revenue — 2,046 8 (2,054 ) — Total net revenue — 2,119 17,571 (2,054 ) 17,636 Cost of revenue: Cost of products sold — 142 6,407 — 6,549 Cost of subscriptions and services — 12 32 — 44 Intercompany cost of products sold — (12 ) 174 (162 ) — Purchase accounting effect on inventory — — 4 — 4 Amortization of acquisition-related intangible assets — 7 2,504 — 2,511 Restructuring charges — 5 14 — 19 Total cost of revenue — 154 9,135 (162 ) 9,127 Gross margin — 1,965 8,436 (1,892 ) 8,509 Research and development — 1,490 1,812 — 3,302 Intercompany operating expense — (66 ) 1,958 (1,892 ) — Selling, general and administrative — 339 450 — 789 Amortization of acquisition-related intangible assets — 7 1,757 — 1,764 Restructuring, impairment and disposal charges — 54 107 — 161 Litigation settlements — — 122 — 122 Total operating expenses — 1,824 6,206 (1,892 ) 6,138 Operating income — 141 2,230 — 2,371 Interest expense — (411 ) (43 ) — (454 ) Intercompany interest expense — (274 ) (1,425 ) 1,699 — Loss on extinguishment of debt — (59 ) (107 ) — (166 ) Other income, net — 30 44 — 74 Intercompany interest income — 1,425 274 (1,699 ) — Intercompany other income (expense), net — (589 ) 589 — — Income from continuing operations before income taxes and earnings in subsidiaries — 263 1,562 — 1,825 Provision for (benefit from) income taxes — 67 (32 ) — 35 Income from continuing operations before earnings in subsidiaries — 196 1,594 — 1,790 Earnings in subsidiaries 1,692 1,601 — (3,293 ) — Income from continuing operations and earnings in subsidiaries 1,692 1,797 1,594 (3,293 ) 1,790 Income (loss) from discontinued operations, net of income taxes — (13 ) 7 — (6 ) Net income 1,692 1,784 1,601 (3,293 ) 1,784 Net income attributable to noncontrolling interest — 92 — — 92 Net income attributable to common stock $ 1,692 $ 1,692 $ 1,601 $ (3,293 ) $ 1,692 Net income $ 1,692 $ 1,784 $ 1,601 $ (3,293 ) $ 1,784 Other comprehensive income, net of tax: Change in actuarial loss and prior service costs associated with defined benefit pension plans and post-retirement benefit plans — — 43 — 43 Other comprehensive income — — 43 — 43 Comprehensive income 1,692 1,784 1,644 (3,293 ) 1,827 Comprehensive income attributable to noncontrolling interest — 92 — — 92 Comprehensive income attributable to Broadcom Inc. stockholders $ 1,692 $ 1,692 $ 1,644 $ (3,293 ) $ 1,735 Condensed Consolidating Statements of Cash Flows Fiscal Year Ended November 3, 2019 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income $ 2,724 $ 3,944 $ 4,157 $ (8,101 ) $ 2,724 Adjustments to reconcile net income to net cash provided by (used in) operating activities (3,264 ) (4,571 ) 6,707 8,101 6,973 Net cash provided by (used in) operating activities (540 ) (627 ) 10,864 — 9,697 Cash flows from investing activities: Net change in intercompany loans 1,375 (796 ) (9,210 ) 8,631 — Acquisitions of businesses, net of cash acquired (17,865 ) — 1,832 — (16,033 ) Proceeds from sales of businesses — — 957 — 957 Purchases of property, plant and equipment — (165 ) (297 ) 30 (432 ) Proceeds from disposals of property, plant and equipment — 30 88 (30 ) 88 Purchases of investments (5 ) — — — (5 ) Proceeds from sales of investments — — 5 — 5 Other — — (2 ) — (2 ) Net cash used in investing activities (16,495 ) (931 ) (6,627 ) 8,631 (15,422 ) Cash flows from financing activities: Net intercompany borrowings 9,818 156 (1,343 ) (8,631 ) — Proceeds from long-term borrowings 28,793 — — — 28,793 Repayment of debt (16,400 ) — (400 ) — (16,800 ) Other borrowings 986 — 255 — 1,241 Dividend and distribution payments on common stock and exchangeable limited partnership units (4,235 ) — — — (4,235 ) Repurchases of common stock - repurchase program (5,435 ) — — — (5,435 ) Shares repurchased for tax withholdings on vesting of equity awards — (446 ) (526 ) — (972 ) Issuance of preferred stock, net 3,679 — — — 3,679 Issuance of common stock 253 — — — 253 Other (50 ) — 14 — (36 ) Net cash provided by (used in) financing activities 17,409 (290 ) (2,000 ) (8,631 ) 6,488 Net change in cash and cash equivalents 374 (1,848 ) 2,237 — 763 Cash and cash equivalents at beginning of period — 2,461 1,831 — 4,292 Cash and cash equivalents at end of period $ 374 $ 613 $ 4,068 $ — $ 5,055 Condensed Consolidating Statements of Cash Flows Fiscal Year Ended November 4, 2018 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (In millions) Cash flows from operating activities: Net income $ 12,259 $ 12,641 $ 4,266 $ (16,556 ) $ 12,610 Adjustments to reconcile net income to net cash provided by (used in) operating activities (12,323 ) (12,893 ) 4,701 16,785 (3,730 ) Net cash provided by (used in) operating activities (64 ) (252 ) 8,967 229 8,880 Cash flows from investing activities: Intercompany contributions paid — (9,099 ) (3,002 ) 12,101 — Distributions received from subsidiaries — — 1,521 (1,521 ) — Net change in intercompany loans — 2,637 (261 ) (2,376 ) — Acquisitions of businesses, net of cash acquired — — (4,800 ) — (4,800 ) Proceeds from sales of businesses — — 773 — 773 Purchases of property, plant and equipment — (196 ) (497 ) 58 (635 ) Proceeds from disposals of property, plant and equipment — 55 242 (58 ) 239 Purchases of investments — (50 ) (199 ) — (249 ) Proceeds from sales of investments — 54 — — 54 Other — (50 ) (6 ) — (56 ) Net cash used in investing activities — (6,649 ) (6,229 ) 8,204 (4,674 ) Cash flows from financing activities: Intercompany contributions received — 3,231 9,099 (12,330 ) — Net intercompany borrowings 8,690 261 (11,327 ) 2,376 — Repayment of debt — (117 ) (856 ) — (973 ) Dividend and distribution payments on common stock and exchangeable limited partnership units (1,477 ) (1,521 ) (1,521 ) 1,521 (2,998 ) Repurchases of common stock - repurchase program (7,258 ) — — — (7,258 ) Shares repurchased for tax withholdings on vesting of equity awards — (20 ) (36 ) — (56 ) Issuance of common stock 109 — 103 — 212 Other — (27 ) (18 ) — (45 ) Net cash provided by (used in) financing activities 64 1,807 (4,556 ) (8,433 ) (11,118 ) Net change in cash and cash equivalents — (5,094 ) (1,818 ) — (6,912 ) Cash and cash equivalents at the beginning of period — 7,555 3,649 — 11,204 Cash and cash equivalents at end of period $ — $ 2,461 $ 1,831 $ — $ 4,292 Condensed Consolidating Statements of Cash Flows Fiscal Year Ended October 29, 2017 Parent Guarantor Subsidiary Issuers Non-Guarantor Subsidiaries Eliminations Consolidated Totals (in millions) Cash flows from operating activities: Net income $ 1,692 $ 1,784 $ 1,601 $ (3,293 ) $ 1,784 Adjustments to reconcile net income to net cash provided by operating activities (1,692 ) 924 2,077 3,458 4,767 Net cash provided by operating activities — 2,708 3,678 165 6,551 Cash flows from investing activities: Intercompany contributions paid — — (40 ) 40 — Distributions received from subsidiaries — — 1,834 (1,834 ) — Net change in intercompany loans — (286 ) 5,835 (5,549 ) — Acquisitions of businesses, net of cash acquired — — (40 ) — (40 ) Proceeds from sales of businesses — — 10 — 10 Purchases of property, plant and equipment — (254 ) (841 ) 26 (1,069 ) Proceeds from disposals of property, plant and equipment — 25 442 (26 ) 441 Purchases of investments — (200 ) (7 ) — (207 ) Proceeds from maturities of investments — 200 — — 200 Other — — (9 ) — (9 ) Net cash provided by (used in) investing activities — (515 ) 7,184 (7,343 ) (674 ) Cash flows from financing activities: Intercompany contributions received — 205 — (205 ) — Net intercompany borrowings — (5,797 ) 248 5,549 — Proceeds from long-term borrowings — 17,426 — — 17,426 Repayment of debt — (5,704 ) (7,964 ) — (13,668 ) Dividend and distribution payments on common stock and exchangeable limited partnership units — (1,834 ) (1,745 ) 1,834 (1,745 ) Issuance of common stock — — 257 — 257 Other — (26 ) (14 ) — (40 ) Net cash provided by (used in) financing activities — 4,270 (9,218 ) 7,178 2,230 Net change in cash and cash equivalents — 6,463 1,644 — 8,107 Cash and cash equivalents at beginning of period — 1,092 2,005 — 3,097 Cash and cash equivalents at end of period $ — $ 7,555 $ 3,649 $ — $ 11,204 |