BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)

Fiscal Quarter Ended

Fiscal Year Ended

November 3,

August 4,

October 29,

November 3,

October 29,

2024

2024

2023

2024

2023

Gross margin on GAAP basis

$

9,002

$

8,356

$

6,407

$

32,509

$

24,690

Amortization of acquisition-related intangible assets

1,602

1,525

438

6,023

1,853

Stock-based compensation expense

159

174

62

664

210

Restructuring charges

51

58

1

254

4

Acquisition-related costs

-

-

-

9

-

Gross margin on non-GAAP basis

$

10,814

$

10,113

$

6,908

$

39,459

$

26,757

Research and development on GAAP basis

$

2,234

$

2,353

$

1,388

$

9,310

$

5,253

Stock-based compensation expense

839

877

448

3,460

1,513

Acquisition-related costs

-

2

-

3

-

Research and development on non-GAAP basis

$

1,395

$

1,474

$

940

$

5,847

$

3,740

Selling, general and administrative expense on GAAP basis

$

1,010

$

1,100

$

418

$

4,959

$

1,592

Stock-based compensation expense

316

330

128

1,546

448

Acquisition-related costs

86

79

69

537

252

Selling, general and administrative expense on non-GAAP basis

$

608

$

691

$

221

$

2,876

$

892

Total operating expenses on GAAP basis

$

4,375

$

4,568

$

2,167

$

19,046

$

8,483

Amortization of acquisition-related intangible assets

813

812

348

3,244

1,394

Stock-based compensation expense

1,155

1,207

576

5,006

1,961

Restructuring and other charges

318

303

13

1,533

244

Acquisition-related costs

86

81

69

540

252

Total operating expenses on non-GAAP basis

$

2,003

$

2,165

$

1,161

$

8,723

$

4,632

Operating income on GAAP basis

$

4,627

$

3,788

$

4,240

$

13,463

$

16,207

Amortization of acquisition-related intangible assets

2,415

2,337

786

9,267

3,247

Stock-based compensation expense

1,314

1,381

638

5,670

2,171

Restructuring and other charges

369

361

14

1,787

248

Acquisition-related costs

86

81

69

549

252

Operating income on non-GAAP basis

$

8,811

$

7,948

$

5,747

$

30,736

$

22,125

Interest expense on GAAP basis

$

(916)

$

(1,064)

$

(405)

$

(3,953)

$

(1,622)

Loss on debt extinguishment

52

83

-

157

-

Interest expense on non-GAAP basis

$

(864)

$

(981)

$

(405)

$

(3,796)

$

(1,622)

Other income, net on GAAP basis

$

52

$

82

$

132

$

406

$

512

(Gains) losses on investments

30

6

24

12

(11)

Other

-

-

(1)

-

(1)

Other income, net on non-GAAP basis

$

82

$

88

$

155

$

418

$

500

Provision for (benefit from) income taxes on GAAP basis

$

(442)

$

4,238

$

443

$

3,748

$

1,015

Non-GAAP tax reconciling adjustments ⁽¹⁾

1,506

(3,303)

244

(123)

1,610

Provision for income taxes on non-GAAP basis

$

1,064

$

935

$

687

$

3,625

$

2,625

Net income (loss) on GAAP basis

$

4,324

$

(1,875)

$

3,524

$

5,895

$

14,082

Amortization of acquisition-related intangible assets

2,415

2,337

786

9,267

3,247

Stock-based compensation expense

1,314

1,381

638

5,670

2,171

Restructuring and other charges

369

361

14

1,787

248

Acquisition-related costs

86

81

69

549

252

Loss on debt extinguishment

52

83

-

157

-

(Gains) losses on investments

30

6

24

12

(11)

Other

-

-

(1)

-

(1)

Non-GAAP tax reconciling adjustments ⁽¹⁾

(1,506)

3,303

(244)

123

(1,610)

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

(119)

443

-

273

-

Net income on non-GAAP basis

$

6,965

$

6,120

$

4,810

$

23,733

$

18,378

Net income (loss) on GAAP basis

$

4,324

$

(1,875)

$

3,524

$

5,895

$

14,082

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

2,415

2,337

786

9,267

3,247

Stock-based compensation expense

1,314

1,381

638

5,670

2,171

Restructuring and other charges

369

361

14

1,787

248

Acquisition-related costs

86

81

69

549

252

Loss on debt extinguishment

52

83

-

157

-

(Gains) losses on investments

30

6

24

12

(11)

Other

-

-

(1)

-

(1)

Non-GAAP tax reconciling adjustments ⁽¹⁾

(1,506)

3,303

(244)

123

(1,610)

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

(119)

443

-

273

-

Other Adjustments:

Interest expense

864

981

405

3,796

1,622

Provision for income taxes on non-GAAP basis

1,064

935

687

3,625

2,625

Depreciation

156

149

124

593

502

Amortization of purchased intangibles and right-of-use assets

40

38

22

150

86

Adjusted EBITDA

$

9,089

$

8,223

$

6,048

$

31,897

$

23,213

Weighted-average shares used in per share calculations - diluted on GAAP basis ⁽²⁾

4,828

4,663

4,268

4,778

4,272

Non-GAAP adjustment ⁽³⁾

77

254

82

99

81

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

4,905

4,917

4,350

4,877

4,353

Net cash provided by operating activities

$

5,604

$

4,963

$

4,828

$

19,962

$

18,085

Purchases of property, plant and equipment

(122)

(172)

(105)

(548)

(452)

Free cash flow

$

5,482

$

4,791

$

4,723

$

19,414

$

17,633

 Fiscal
Quarter
Ending

February 2,

Expected average diluted share count:

2025

Weighted-average shares used in per share calculation - diluted on GAAP basis ⁽²⁾

4,828

Non-GAAP adjustment ⁽³⁾

68

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

4,896

(1) Non-GAAP tax reconciling adjustments included a one-time discrete non-cash tax provision of $4.5 billion from the impact of an intra-group transfer of certain IP rights to the United States as a result of supply chain realignment for the fiscal quarter ended August 4, 2024 and the fiscal year ended November 3, 2024.

(2) Reflects a ten-for-one forward stock split on July 12, 2024.

(3) 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 ended August 4, 2024, non-GAAP adjustment included the dilutive effect of the equity awards that were antidilutive on a GAAP basis.