BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)

Fiscal Quarter Ended

Fiscal Year Ended

October 29,

July 30,

October 30,

October 29,

October 30,

2023

2023

2022

2023

2022

Gross margin on GAAP basis

$

6,407

$

6,164

$

5,926

$

24,690

$

22,095

Amortization of acquisition-related intangible assets

438

439

705

1,853

2,847

Stock-based compensation expense

62

61

38

210

147

Restructuring charges

1

1

1

4

5

Acquisition-related costs

-

-

3

-

13

Gross margin on non-GAAP basis

$

6,908

$

6,665

$

6,673

$

26,757

$

25,107

Research and development on GAAP basis

$

1,388

$

1,358

$

1,197

$

5,253

$

4,919

Stock-based compensation expense

448

444

260

1,513

1,048

Acquisition-related costs

-

1

-

-

-

Research and development on non-GAAP basis

$

940

$

913

$

937

$

3,740

$

3,871

Selling, general and administrative expense on GAAP basis

$

418

$

388

$

370

$

1,592

$

1,382

Stock-based compensation expense

128

124

89

448

338

Acquisition-related costs

69

48

45

252

102

Selling, general and administrative expense on non-GAAP basis

$

221

$

216

$

236

$

892

$

942

Total operating expenses on GAAP basis

$

2,167

$

2,308

$

1,940

$

8,483

$

7,870

Amortization of acquisition-related intangible assets

348

350

358

1,394

1,512

Stock-based compensation expense

576

568

349

1,961

1,386

Restructuring and other charges

13

212

15

244

57

Acquisition-related costs

69

49

45

252

102

Total operating expenses on non-GAAP basis

$

1,161

$

1,129

$

1,173

$

4,632

$

4,813

Operating income on GAAP basis

$

4,240

$

3,856

$

3,986

$

16,207

$

14,225

Amortization of acquisition-related intangible assets

786

789

1,063

3,247

4,359

Stock-based compensation expense

638

629

387

2,171

1,533

Restructuring and other charges

14

213

16

248

62

Acquisition-related costs

69

49

48

252

115

Operating income on non-GAAP basis

$

5,747

$

5,536

$

5,500

$

22,125

$

20,294

Interest expense on GAAP basis

$

(405)

$

(406)

$

(406)

$

(1,622)

$

(1,737)

Loss on debt extinguishment

-

-

-

-

112

Interest expense on non-GAAP basis

$

(405)

$

(406)

$

(406)

$

(1,622)

$

(1,625)

Other income (expense), net on GAAP basis

$

132

$

124

$

40

$

512

$

(54)

(Gains) losses on investments

24

(2)

29

(11)

169

Other

(1)

-

-

(1)

(5)

Other income, net on non-GAAP basis

$

155

$

122

$

69

$

500

$

110

Provision for income taxes on GAAP basis

$

443

$

271

$

261

$

1,015

$

939

Non-GAAP tax reconciling adjustments

244

385

358

1,610

1,314

Provision for income taxes on non-GAAP basis

$

687

$

656

$

619

$

2,625

$

2,253

Net income on GAAP basis

$

3,524

$

3,303

$

3,359

$

14,082

$

11,495

Amortization of acquisition-related intangible assets

786

789

1,063

3,247

4,359

Stock-based compensation expense

638

629

387

2,171

1,533

Restructuring and other charges

14

213

16

248

62

Acquisition-related costs

69

49

48

252

115

Loss on debt extinguishment

-

-

-

-

112

(Gains) losses on investments

24

(2)

29

(11)

169

Other

(1)

-

-

(1)

(5)

Non-GAAP tax reconciling adjustments

(244)

(385)

(358)

(1,610)

(1,314)

Net income on non-GAAP basis

$

4,810

$

4,596

$

4,544

$

18,378

$

16,526

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

427

427

429

427

423

Non-GAAP adjustment ⁽¹⁾

8

9

6

8

16

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

435

436

435

435

439

Net income on non-GAAP basis

$

4,810

$

4,596

$

4,544

$

18,378

$

16,526

Interest expense

405

406

406

1,622

1,625

Provision for income taxes on non-GAAP basis

687

656

619

2,625

2,253

Depreciation

124

122

129

502

529

Amortization of purchased intangibles and right-of-use assets

22

21

24

86

96

Adjusted EBITDA

$

6,048

$

5,801

$

5,722

$

23,213

$

21,029

Net cash provided by operating activities

$

4,828

$

4,719

$

4,583

$

18,085

$

16,736

Purchases of property, plant and equipment

(105)

(122)

(122)

(452)

(424)

Free cash flow

$

4,723

$

4,597

$

4,461

$

17,633

$

16,312

 Fiscal Year
  Ending 

November 3,

Expected average diluted share count ⁽²⁾ : 

2024

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

480

Non-GAAP adjustment ⁽¹⁾

14

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

494

(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. In addition, the non-GAAP adjustment includes the impact of Mandatory Convertible
Preferred Stock that is antidilutive on a GAAP basis for the fiscal year ended October 30, 2022.

(2) Excludes the effects of potential share repurchases.