BROADCOM CORPORATION

Unaudited Condensed Consolidated Statements of Cash Flows

(In millions)

Three Months Ended

Nine Months Ended

September 30,

June 30,

September 30,

September 30,

2015

2015

2014

2015

2014

Operating activities

Net income

$

429

$

386

$

98

$

1,024

$

262

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

Depreciation and amortization

40

43

42

122

141

Stock-based compensation expense

85

86

107

261

340

Acquisition-related items:

Amortization of purchased intangible assets

32

33

54

102

169

Impairments of long-lived assets

—

—

200

143

390

Loss (gain) on sale of assets and other

1

—

3

4

(44)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable, net

(44)

(105)

(142)

(161)

(143)

Inventory

60

18

(10)

(21)

(100)

Prepaid expenses and other assets

18

9

11

(38)

7

Accounts payable

(72)

146

—

16

97

Deferred revenue

(3)

(8)

(7)

(17)

98

Other accrued and long-term liabilities

(63)

194

105

(175)

75

Net cash provided by operating activities

483

802

461

1,260

1,292

Investing activities

Net purchases of property and equipment

(81)

(17)

(56)

(254)

(214)

Net cash paid for acquired companies

—

—

(3)

—

(9)

Proceeds from sale (purchases) of certain assets and other

(3)

—

—

(18)

90

Purchases of marketable securities

(1,115)

(1,745)

(955)

(3,797)

(1,868)

Proceeds from sales and maturities of marketable securities

1,055

1,179

447

2,813

1,417

Net cash used in investing activities

(144)

(583)

(567)

(1,256)

(584)

Financing activities

Issuance of long-term debt, net

—

—

592

—

592

Payments of long-term debt

—

—

(400)

—

(400)

Repurchases of Class A common stock

—

(128)

(227)

(463)

(418)

Dividends paid

(86)

(84)

(71)

(254)

(211)

Proceeds from issuance of common stock

19

327

136

494

419

Minimum tax withholding paid on behalf of employees for restricted stock units

(36)

(35)

(34)

(114)

(93)

Net cash provided by (used in) financing activities

(103)

80

(4)

(337)

(111)

Increase (decrease) in cash and cash equivalents

236

299

(110)

(333)

597

Cash and cash equivalents at beginning of period

1,976

1,677

2,364

2,545

1,657

Cash and cash equivalents at end of period

$

2,212

$

1,976

$

2,254

$

2,212

$

2,254