BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(IN MILLIONS)

 Fiscal Quarter Ended 

 Two Fiscal Quarters Ended 

May 5,

February 3,

May 6,

May 5,

May 6,

2019

2019

2018

2019

2018

Cash flows from operating activities:

Net income

$                691

$                471

$            3,733

$            1,162

$          10,299

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

   Amortization of intangible assets

1,305

1,316

836

2,621

1,894

   Depreciation

142

143

128

285

254

   Stock-based compensation

544

465

296

1,009

595

   Deferred taxes and other non-cash taxes

(94)

(379)

(2,702)

(473)

(8,534)

   Non-cash restructuring, impairment and disposal charges

6

92

5

98

10

   Non-cash interest expense

14

13

6

27

12

   Other

(39)

(21)

14

(60)

17

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

     Trade accounts receivable, net

193

68

(277)

261

(78)

     Inventory

40

50

56

90

306

     Accounts payable

30

(169)

91

(139)

(312)

     Employee compensation and benefits

(6)

(458)

84

(464)

(292)

     Contributions to defined benefit pension plans

-

-

-

-

(129)

     Other current assets and current liabilities

(37)

506

70

469

354

     Other long-term assets and long-term liabilities

(122)

35

(27)

(87)

(398)

Net cash provided by operating activities

2,667

2,132

2,313

4,799

3,998

Cash flows from investing activities:

   Acquisitions of businesses, net of cash acquired

-

(16,027)

-

(16,027)

(4,786)

   Proceeds from sales of businesses

-

957

-

957

782

   Purchases of property, plant and equipment

(125)

(99)

(189)

(224)

(409)

   Proceeds from disposals of property, plant and equipment

-

-

1

-

238

   Purchases of investments

(5)

-

(5)

(5)

(249)

   Proceeds from sales of investments

3

-

54

3

54

   Other

21

(24)

(16)

(3)

(12)

Net cash used in investing activities

(106)

(15,193)

(155)

(15,299)

(4,382)

Cash flows from financing activities:

   Proceeds from long-term borrowings

10,897

17,896

-

28,793

-

   Repayment of debt

(12,000)

-

-

(12,000)

(856)

   Payment of debt issuance costs

-

(46)

-

(46)

-

   Other borrowings

1,044

531

-

1,575

-

   Dividend and distribution payments

(1,057)

(1,067)

(766)

(2,124)

(1,521)

   Repurchases of common stock - repurchase program

(830)

(3,436)

(347)

(4,266)

(347)

   Shares repurchased for tax witholdings on vesting of equity awards

(500)

(77)

(2)

(577)

(2)

   Issuance of common stock

121

62

80

183

114

   Other

(1)

(1)

(12)

(2)

(21)

Net cash provided by (used in) financing activities

(2,326)

13,862

(1,047)

11,536

(2,633)

Net change in cash and cash equivalents

235

801

1,111

1,036

(3,017)

Cash and cash equivalents at the beginning of period

5,093

4,292

7,076

4,292

11,204

Cash and cash equivalents at end of period

$             5,328

$             5,093

$            8,187

$            5,328

$            8,187

Supplemental disclosure of cash flow information:

Cash paid for interest

$                189

$                423

$                   1

$                612

$                233

Cash paid for income taxes

$                425

$                  95

$                 87

$                520

$                196