AVGO
$319.44
Broadcom
($2.06)
(.64%)
Earnings Details
2nd Quarter April 2020
Thursday, June 4, 2020 4:15:00 PM
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Summary

Broadcom Reports In-line

Broadcom (AVGO) reported 2nd Quarter April 2020 earnings of $5.21 per share on revenue of $5.7 billion. The consensus earnings estimate was $5.14 per share on revenue of $5.7 billion. The Earnings Whisper number was $5.21 per share. Revenue grew 4.1% on a year-over-year basis.

The company said it expects third quarter revenue of $5.60 billion to $5.90 billion. The current consensus revenue estimate is $5.81 billion for the quarter ending July 31, 2020.

Avago Technologies Ltd is engaged in manufacturing semiconductor products such as optoelectronics, radio-frequency and microwave components, and application-specific integrated circuits.

Results
Reported Earnings
$5.21
Earnings Whisper
$5.21
Consensus Estimate
$5.14
Reported Revenue
$5.74 Bil
Revenue Estimate
$5.70 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Broadcom Inc. Announces Second Quarter Fiscal Year 2020 Financial Results and Quarterly Dividends

SAN JOSE, Calif., June 4, 2020 /PRNewswire/ -- Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its second quarter of fiscal year 2020, ended May 3, 2020, provided guidance for the third quarter of its fiscal year 2020 and announced its quarterly dividends.

"Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19," said Hock Tan, President and CEO of Broadcom Inc. "Looking ahead, our third quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless. We remain focused on investing in our diverse set of mission critical semiconductor and software franchises, while carefully managing our expenses in this uncertain environment."

"We generated record quarterly free cash flow of over $3 billion and reinforced our balance sheet, ending the quarter with over $9 billion of cash," said Tom Krause, CFO of Broadcom Inc. "Given our strong free cash flow generation, healthy balance sheet and enhanced liquidity position, we remain committed to maintaining our dividend while we navigate these unprecedented times."

Second Quarter Fiscal Year 2020 Financial Highlights





 GAAP 







Non-GAAP



(Dollars in millions, except per share data)


Q2 20


Q2 19


Change



Q2 20


Q2 19


Change

Net revenue


$ 5,742


$ 5,517


+4%



$ 5,742


$      5,517


+4%

Net income


$    563


$    691


-$   128



$ 2,323


$      2,334


-$    11

Earnings per common share - diluted


$   1.17


$   1.64


-$  0.47



$   5.14


$        5.21


-$ 0.07















(Dollars in millions)


Q2 20


Q2 19


Change








Cash flow from operations


$ 3,213


$ 2,667


+$   546








Adjusted EBITDA


$ 3,209


$ 3,114


+$     95








Free cash flow


$ 3,065


$ 2,542


+$   523








 

Net revenue by segment














(Dollars in millions)


Q2 20


Q2 19


Change

Semiconductor solutions


$ 4,027


70%


$ 4,104


74%


-2%

Infrastructure software


1,715


30


1,413


26


+21%

Total net revenue


$ 5,742


100%


$ 5,517


100%




The Company's cash and cash equivalents at the end of the second fiscal quarter were $9,207 million, compared to $6,444 million at the end of the prior quarter.

During the second fiscal quarter, the Company generated $3,213 million in cash from operations and spent $148 million on capital expenditures.

On March 31, 2020, the Company paid a cash dividend of $3.25 per share of common stock, totaling $1,306 million and a cash dividend of $20.00 per share of mandatory convertible preferred stock, totaling $75 million.

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

Third Quarter Fiscal Year 2020 Business Outlook

Based on current business trends and conditions, the outlook for the third quarter of fiscal year 2020, ending August 2, 2020, is expected to be as follows: 

  • Third quarter revenue guidance of $5.75 billion plus or minus $150 million; and
  • Third quarter Adjusted EBITDA of $3,220 million plus or minus $75 million, or 56% of revenue at the midpoint of guidance.

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Quarterly Dividends

The Company's Board of Directors has approved a quarterly cash dividend on its common stock of $3.25 per share. The common stock dividend is payable on June 30, 2020 to common stockholders of record at the close of business (5:00 p.m. Eastern Time) on June 22, 2020.

The Company's Board of Directors has also approved a quarterly cash dividend on its 8.00% Mandatory Convertible Preferred Stock, Series A, of $20.00 per share. This dividend is payable on June 30, 2020 to preferred stockholders of record at the close of business (5:00 p.m. Eastern Time) on June 15, 2020.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the second quarter of fiscal year 2020, ended May 3, 2020, and to discuss the business outlook, today at 2:00 p.m. Pacific Time. Those wishing to access the call should dial (866) 310-8712; International +1 (720) 634-2946. The passcode is 7865139. A replay of the call will be accessible for one week after the call. To access the replay dial (855) 859-2056; International +1 (404) 537-3406; and reference the passcode: 7865139. A webcast of the conference call will also be available in the "Investors" section of Broadcom's website at www.broadcom.com.

Basis of Presentation

The Company's financial results include contributions from the Symantec enterprise security business' continuing operations starting in the first quarter of fiscal year 2020. The financial results from businesses that have been classified as discontinued operations in the Company's financial statements are not included in the results presented above, unless otherwise stated.

Non-GAAP Financial Measures

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

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

About Broadcom Inc.

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

Cautionary Note Regarding Forward-Looking Statements

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

Particular uncertainties that could materially affect future results include risks associated with:  the COVID-19 pandemic, which has, and will likely continue to, negatively impact the global economy and disrupt normal business activity, and which may have an adverse effect on our results of operations; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; global economic conditions and concerns; international political and economic conditions; any acquisitions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions, including our recent acquisition of Symantec Corporation's Enterprise Security business; government regulations and trade restrictions; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; dependence on and risks associated with distributors and resellers of our products; dependence on senior management and our ability to attract and retain qualified personnel; involvement in legal or administrative proceedings; quarterly and annual fluctuations in operating results; our ability to accurately estimate customers' demand and adjust our manufacturing and supply chain accordingly; cyclicality in the semiconductor industry or in our target markets; our competitive performance and ability to continue achieving design wins with our customers, as well as the timing of any design wins; prolonged disruptions of our or our contract manufacturers' manufacturing facilities, warehouses or other significant operations; our ability to improve our manufacturing efficiency and quality; our dependence on outsourced service providers for certain key business services and their ability to execute to our requirements; our ability to maintain or improve gross margin; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; sales to our government clients; availability of third party software used in our products; use of open source code sources in our products; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims; market acceptance of the end products into which our products are designed; our ability to sell to new types of customers and to keep pace with technological advances; our compliance with privacy and data security laws; our ability to protect against a breach of security systems; changes in accounting standards; fluctuations in foreign exchange rates; our provision for income taxes and overall cash tax costs, legislation that may impact our overall cash tax costs and our ability to maintain tax concessions in certain jurisdictions; and other events and trends on a national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. Many of the foregoing risks and uncertainties are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. 

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

Contact:
Broadcom Inc.
Beatrice F. Russotto
Investor Relations
408-433-8000
investor.relations@broadcom.com


1 The Company is not readily able to provide a reconciliation of the projected non-GAAP financial information presented to the relevant projected GAAP measure without unreasonable effort.

 

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(IN MILLIONS, EXCEPT PER SHARE DATA)

























Fiscal Quarter Ended


Two Fiscal Quarters Ended



May 3,


February 2,


May 5,


May 3,


May 5,



2020


2020


2019


2020


2019












Net revenue


$        5,742


$        5,858


$        5,517


$        11,600


$        11,306

Cost of revenue:











Cost of revenue


1,592


1,636


1,592


3,228


3,284

Amortization of acquisition-related intangible assets


954


950


826


1,904


1,659

Restructuring charges


7


8


10


15


66

Total cost of revenue


2,553


2,594


2,428


5,147


5,009












Gross margin


3,189


3,264


3,089


6,453


6,297












Research and development


1,269


1,289


1,151


2,558


2,284

Selling, general and administrative


501


601


419


1,102


890

Amortization of acquisition-related intangible assets


599


603


473


1,202


949

Restructuring, impairment and disposal charges


54


57


76


111


649












Total operating expenses


2,423


2,550


2,119


4,973


4,772












Operating income


766


714


970


1,480


1,525

Interest expense


(487)


(406)


(376)


(893)


(721)

Other income (expense), net


130


(4)


63


126


131












Income from continuing operations before income taxes


409


304


657


713


935

Benefit from income taxes


(159)


(76)


(36)


(235)


(239)












Income from continuing operations


568


380


693


948


1,174

Income (loss) from discontinued operations, net of income taxes


(5)


5


(2)


-


(12)












Net income


563


385


691


948


1,162

Dividends on preferred stock (1)


(75)


(74)


-


(149)


-












Net income attributable to common stock


$          488


$          311


$           691


$           799


$        1,162























Basic income per share attributable to common stock:











Income per share from continuing operations


$         1.23


$         0.77


$          1.75


$          2.00


$          2.94

Income (loss) per share from discontinued operations


(0.01)


0.01


(0.01)


-


(0.03)

Net income per share


$         1.22


$         0.78


$          1.74


$          2.00


$          2.91












Diluted income per share attributable to common stock (2):











Income per share from continuing operations


$         1.18


$          0.73


$          1.64


$          1.91


$          2.80

Income (loss) per share from discontinued operations


(0.01)


0.01


-


-


(0.03)

Net income per share


$         1.17


$          0.74


$          1.64


$          1.91


$          2.77












Weighted-average shares used in per share calculations:











Basic


401


398


397


400


399

Diluted


417


420


422


419


420












Stock-based compensation expense included in continuing operations:











Cost of revenue


$            41


$             43


$            41


$            84


$            75

Research and development


373


391


371


764


682

Selling, general and administrative


103


111


132


214


252












Total stock-based compensation expense


$          517


$           545


$          544


$       1,062


$       1,009


(1) For the fiscal quarter and two fiscal quarters ended May 3, 2020 and the fiscal quarter ended February 2, 2020, net income attributable to common stock excludes dividends on Mandatory Convertible Preferred Stock issued during the fiscal quarter ended November 3, 2019.


(2) For the fiscal quarter and two fiscal quarters ended May 3, 2020 and the fiscal quarter ended February 2, 2020, diluted income per share excluded the potentially dilutive effect of Mandatory Convertible Preferred Stock as the impact was antidilutive.

 

BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)

























Fiscal Quarter Ended


Two Fiscal Quarters Ended



May 3,


February 2,


May 5,


May 3,


May 5,



2020


2020


2019


2020


2019























Gross margin on GAAP basis


$         3,189


$        3,264


$        3,089


$        6,453


$         6,297

Purchase accounting effect on inventory


-


11


-


11


-

Amortization of acquisition-related intangible assets


954


950


826


1,904


1,659

Stock-based compensation expense


41


43


41


84


75

Restructuring charges


7


8


10


15


66

 Acquisition-related costs


5


1


5


6


7












Gross margin on non-GAAP basis


$         4,196


$        4,277


$        3,971


$        8,473


$        8,104























Research and development on GAAP basis


$         1,269


$        1,289


$        1,151


$        2,558


$        2,284

Stock-based compensation expense


373


391


371


764


682

Acquisition-related costs


5


7


1


12


3












Research and development on non-GAAP basis


$           891


$           891


$           779


$        1,782


$        1,599























Selling, general and administrative expense on GAAP basis


$           501


$           601


$           419


$        1,102


$           890

Stock-based compensation expense


103


111


132


214


252

Acquisition-related costs


95


175


44


270


134

Litigation settlements


29


13


-


42


-












Selling, general and administrative expense on
non-GAAP basis


$           274


$           302


$           243


$           576


$           504























Total operating expenses on GAAP basis


$        2,423


$        2,550


$        2,119


$        4,973


$        4,772

Amortization of acquisition-related intangible assets


599


603


473


1,202


949

Stock-based compensation expense


476


502


503


978


934

Restructuring, impairment and disposal charges


54


57


76


111


649

Litigation settlements


29


13


-


42


-

Acquisition-related costs


100


182


45


282


137












Total operating expenses on non-GAAP basis


$        1,165


$        1,193


$        1,022


$        2,358


$        2,103























Operating income on GAAP basis


$           766


$           714


$           970


$        1,480


$        1,525

Purchase accounting effect on inventory


-


11


-


11


-

Amortization of acquisition-related intangible assets


1,553


1,553


1,299


3,106


2,608

Stock-based compensation expense


517


545


544


1,062


1,009

Restructuring, impairment and disposal charges


61


65


86


126


715

Litigation settlements


29


13


-


42


-

Acquisition-related costs


105


183


50


288


144












Operating income on non-GAAP basis


$        3,031


$        3,084


$        2,949


$       6,115


$        6,001























Interest expense on GAAP basis


$         (487)


$          (406)


$         (376)


$         (893)


$         (721)

Loss on debt extinguishment


93


5


26


98


26












Interest expense on non-GAAP basis


$         (394)


$          (401)


$         (350)


$         (795)


$         (695)























Other income (expense), net on GAAP basis


$          130


$              (4)


$             63


$           126


$           131

Gain from lapse of indemnification


(116)


-


-


(116)


-

(Gains) losses on investments


(8)


18


(40)


10


(67)

Acquisition-related gain


(3)


(4)


-


(7)


-












Other income, net on non-GAAP basis


$              3


$             10


$             23


$             13


$             64























Income from continuing operations before income taxes
on GAAP basis


$          409


$           304


$           657


$           713


$           935

Purchase accounting effect on inventory


-


11


-


11


-

Amortization of acquisition-related intangible assets


1,553


1,553


1,299


3,106


2,608

Stock-based compensation expense


517


545


544


1,062


1,009

Restructuring, impairment and disposal charges


61


65


86


126


715

Litigation settlements


29


13


-


42


-

Acquisition-related costs


102


179


50


281


144

Loss on debt extinguishment


93


5


26


98


26

Gain from lapse of indemnification


(116)


-


-


(116)


-

(Gains) losses on investments


(8)


18


(40)


10


(67)












Income before income taxes on non-GAAP basis


$      2,640


$       2,693


$        2,622


$        5,333


$        5,370























Benefit from income taxes on GAAP basis


$        (159)


$           (76)


$            (36)


$         (235)


$         (239)

Non-GAAP tax reconciling adjustments


476


399


324


875


829












Provision for income taxes on non-GAAP basis


$         317


$          323


$           288


$           640


$          590























Net income on GAAP basis


$         563


$          385


$           691


$           948


$       1,162

Purchase accounting effect on inventory


-


11


-


11


-

Amortization of acquisition-related intangible assets


1,553


1,553


1,299


3,106


2,608

Stock-based compensation expense


517


545


544


1,062


1,009

Restructuring, impairment and disposal charges


61


65


86


126


715

Litigation settlements


29


13


-


42


-

Acquisition-related costs


102


179


50


281


144

Loss on debt extinguishment


93


5


26


98


26

Gain from lapse of indemnification


(116)


-


-


(116)


-

(Gains) losses on investments


(8)


18


(40)


10


(67)

Non-GAAP tax reconciling adjustments


(476)


(399)


(324)


(875)


(829)

Discontinued operations, net of income taxes


5


(5)


2


-


12












Net income on non-GAAP basis


$      2,323


$       2,370


$        2,334


$       4,693


$       4,780























Weighted-average shares used in per share calculations
- diluted on GAAP basis


417


420


422


419


420

Non-GAAP adjustment (1)


35


31


26


33


25












Weighted-average shares used in per share calculations
- diluted on non-GAAP basis


452


451


448


452


445























Net income on non-GAAP basis


$      2,323


$       2,370


$        2,334


$        4,693


$       4,780

Interest expense on non-GAAP basis


394


401


350


795


695

Provision for income taxes on non-GAAP basis


317


323


288


640


590

Depreciation


147


146


142


293


285

Amortization on non-GAAP basis


28


25


-


53


-












Adjusted EBITDA


$      3,209


$       3,265


$        3,114


$        6,474


$       6,350























Net cash provided by operating activities


$      3,213


$       2,322


$        2,667


$        5,535


$       4,799

Purchases of property, plant and equipment


(148)


(108)


(125)


(256)


(224)












Free cash flow


$      3,065


$       2,214


$        2,542


$        5,279


$       4,575

























 Fiscal Quarter
Ending 











August 2,









Expected average diluted share count:


2020




















Weighted-average shares used in per share calculation
- diluted on GAAP basis


419









Non-GAAP adjustment (1)


33




















Weighted-average shares used in per share calculation
- diluted on non-GAAP basis


452










(1) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. For the fiscal quarter and two fiscal quarters ended May 3, 2020 and the fiscal quarter ended February 2, 2020, the non-GAAP adjustment included the impact of Mandatory Convertible Preferred Stock that was antidilutive on a GAAP basis. For the fiscal quarter ending August 2, 2020, the non-GAAP adjustment includes the impact of Mandatory Convertible Preferred Stock that is expected to be antidilutive on a GAAP basis.

 

BROADCOM INC.

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(IN MILLIONS)















May 3,


November 3,




2020


2019








ASSETS












Current assets:






Cash and cash equivalents


$        9,207


$        5,055


Trade accounts receivable, net


3,211


3,259


Inventory


953


874


Other current assets


851


729








Total current assets


14,222


9,917








Long-term assets:






Property, plant and equipment, net


2,618


2,565


Goodwill


43,457


36,714


Intangible assets, net


19,909


17,554


Other long-term assets


1,342


743








Total assets


$      81,548


$      67,493




















LIABILITIES AND EQUITY












Current liabilities:






Accounts payable


$        1,230


$           855


Employee compensation and benefits


494


641


Current portion of long-term debt


819


2,787


Other current liabilities


4,058


2,616








Total current liabilities


6,601


6,899








Long-term liabilities:






Long-term debt


45,044


30,011


Other long-term liabilities


5,933


5,613








Total liabilities


57,578


42,523














Preferred stock dividend obligation


28


29








Stockholders' equity:






Preferred stock


-


-


Common stock


-


-


Additional paid-in capital


24,073


25,081


Retained earnings


-


-


Accumulated other comprehensive loss


(131)


(140)








Total stockholders' equity


23,942


24,941








  Total liabilities and equity


$     81,548


$      67,493


 

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(IN MILLIONS)














Fiscal Quarter Ended


Two Fiscal Quarters Ended



May 3,


February 2,


May 5,


May 3,


May 5,



2020


2020


2019


2020


2019

Cash flows from operating activities:











Net income


$          563


$          385


$          691


$          948


$        1,162

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











Amortization of intangible and right-of-use assets


1,583


1,582


1,305


3,165


2,621

Depreciation


147


146


142


293


285

Stock-based compensation


517


545


544


1,062


1,009

Deferred taxes and other non-cash taxes


(175)


(72)


(94)


(247)


(473)

Loss on debt extinguishment


93


5


-


98


-

Non-cash restructuring, impairment and disposal charges


6


11


6


17


98

Non-cash interest expense


31


30


14


61


27

Other


(8)


19


(39)


11


(60)

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











  Trade accounts receivable, net


440


(392)


193


48


261

  Inventory


(10)


40


40


30


90

  Accounts payable


233


117


30


350


(139)

  Employee compensation and benefits


61


(217)


(6)


(156)


(464)

  Other current assets and current liabilities


118


346


(37)


464


469

  Other long-term assets and long-term liabilities


(386)


(223)


(122)


(609)


(87)












Net cash provided by operating activities


3,213


2,322


2,667


5,535


4,799























Cash flows from investing activities:











Acquisitions of businesses, net of cash acquired


-


(10,870)


-


(10,870)


(16,027)

Proceeds from sales of businesses


168


-


-


168


957

Purchases of property, plant and equipment


(148)


(108)


(125)


(256)


(224)

Other


4


(9)


19


(5)


(5)












Net cash provided by (used in) investing activities


24


(10,987)


(106)


(10,963)


(15,299)























Cash flows from financing activities:











Proceeds from long-term borrowings


4,468


15,381


10,897


19,849


28,793

Repayment of debt


(4,452)


(4,537)


(12,000)


(8,989)


(12,000)

Other borrowings, net


1,025


718


1,044


1,743


1,575

Payments of dividends


(1,381)


(1,372)


(1,057)


(2,753)


(2,124)

Repurchases of common stock - repurchase program


-


-


(830)


-


(4,266)

Shares repurchased for tax withholdings on vesting of
equity awards


(219)


(169)


(500)


(388)


(577)

Issuance of common stock


91


37


121


128


183

Other


(6)


(4)


(1)


(10)


(48)












Net cash provided by (used in) financing activities


(474)


10,054


(2,326)


9,580


11,536























Net change in cash and cash equivalents


2,763


1,389


235


4,152


1,036

Cash and cash equivalents at the beginning of period


6,444


5,055


5,093


5,055


4,292

Cash and cash equivalents at end of period


$        9,207


$        6,444


$        5,328


$        9,207


$        5,328












Supplemental disclosure of cash flow information:











Cash paid for interest


$           375


$           381


$           189


$           756


$           612

Cash paid for income taxes


$           124


$           131


$           425


$           255


$           520

 

Cision View original content:http://www.prnewswire.com/news-releases/broadcom-inc-announces-second-quarter-fiscal-year-2020-financial-results-and-quarterly-dividends-301071010.html

SOURCE Broadcom Inc.