BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)

Fiscal Quarter Ended

Three Fiscal Quarters Ended

August 4,

May 5,

July 30,

August 4,

July 30,

2024

2024

2023

2024

2023

Gross margin on GAAP basis

$

8,356

$

7,776

$

6,164

$

23,507

$

18,283

Amortization of acquisition-related intangible assets

1,525

1,516

439

4,421

1,415

Stock-based compensation expense

174

170

61

505

148

Restructuring charges

58

53

1

203

3

Acquisition-related costs

-

3

-

9

-

Gross margin on non-GAAP basis

$

10,113

$

9,518

$

6,665

$

28,645

$

19,849

Research and development on GAAP basis

$

2,353

$

2,415

$

1,358

$

7,076

$

3,865

Stock-based compensation expense

877

881

444

2,621

1,065

Acquisition-related costs

2

-

1

3

-

Research and development on non-GAAP basis

$

1,474

$

1,534

$

913

$

4,452

$

2,800

Selling, general and administrative expense on GAAP basis

$

1,100

$

1,277

$

388

$

3,949

$

1,174

Stock-based compensation expense

330

352

124

1,230

320

Acquisition-related costs

79

87

48

451

183

Selling, general and administrative expense on non-GAAP basis

$

691

$

838

$

216

$

2,268

$

671

Total operating expenses on GAAP basis

$

4,568

$

4,811

$

2,308

$

14,671

$

6,316

Amortization of acquisition-related intangible assets

812

827

350

2,431

1,046

Stock-based compensation expense

1,207

1,233

568

3,851

1,385

Restructuring and other charges

303

292

212

1,215

231

Acquisition-related costs

81

87

49

454

183

Total operating expenses on non-GAAP basis

$

2,165

$

2,372

$

1,129

$

6,720

$

3,471

Operating income on GAAP basis

$

3,788

$

2,965

$

3,856

$

8,836

$

11,967

Amortization of acquisition-related intangible assets

2,337

2,343

789

6,852

2,461

Stock-based compensation expense

1,381

1,403

629

4,356

1,533

Restructuring and other charges

361

345

213

1,418

234

Acquisition-related costs

81

90

49

463

183

Operating income on non-GAAP basis

$

7,948

$

7,146

$

5,536

$

21,925

$

16,378

Interest expense on GAAP basis

$

(1,064)

$

(1,047)

$

(406)

$

(3,037)

$

(1,217)

Loss on debt extinguishment

83

22

-

105

-

Interest expense on non-GAAP basis

$

(981)

$

(1,025)

$

(406)

$

(2,932)

$

(1,217)

Other income, net on GAAP basis

$

82

$

87

$

124

$

354

$

380

(Gains) losses on investments

6

9

(2)

(18)

(35)

Other income, net on non-GAAP basis

$

88

$

96

$

122

$

336

$

345

Provision for (benefit from) income taxes on GAAP basis

$

4,238

$

(116)

$

271

$

4,190

$

572

Non-GAAP tax reconciling adjustments ⁽¹⁾

(3,303)

939

385

(1,629)

1,366

Provision for income taxes on non-GAAP basis

$

935

$

823

$

656

$

2,561

$

1,938

Net income (loss) on GAAP basis

$

(1,875)

$

2,121

$

3,303

$

1,571

$

10,558

Amortization of acquisition-related intangible assets

2,337

2,343

789

6,852

2,461

Stock-based compensation expense

1,381

1,403

629

4,356

1,533

Restructuring and other charges

361

345

213

1,418

234

Acquisition-related costs

81

90

49

463

183

Loss on debt extinguishment

83

22

-

105

-

(Gains) losses on investments

6

9

(2)

(18)

(35)

Non-GAAP tax reconciling adjustments ⁽¹⁾

3,303

(939)

(385)

1,629

(1,366)

Loss from discontinued operations, net of income taxes

443

-

-

392

-

Net income on non-GAAP basis

$

6,120

$

5,394

$

4,596

$

16,768

$

13,568

Net income (loss) on GAAP basis

$

(1,875)

$

2,121

$

3,303

$

1,571

$

10,558

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

2,337

2,343

789

6,852

2,461

Stock-based compensation expense

1,381

1,403

629

4,356

1,533

Restructuring and other charges

361

345

213

1,418

234

Acquisition-related costs

81

90

49

463

183

Loss on debt extinguishment

83

22

-

105

-

(Gains) losses on investments

6

9

(2)

(18)

(35)

Non-GAAP tax reconciling adjustments ⁽¹⁾

3,303

(939)

(385)

1,629

(1,366)

Loss from discontinued operations, net of income taxes

443

-

-

392

-

Other Adjustments:

Interest expense

981

1,025

406

2,932

1,217

Provision for income taxes on non-GAAP basis

935

823

656

2,561

1,938

Depreciation

149

149

122

437

378

Amortization of purchased intangibles and right-of-use assets

38

38

21

110

64

Adjusted EBITDA

$

8,223

$

7,429

$

5,801

$

22,808

$

17,165

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

4,663

4,799

4,269

4,762

4,274

Non-GAAP adjustment ⁽²⁾

254

117

94

106

80

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

4,917

4,916

4,363

4,868

4,354

Net cash provided by operating activities

$

4,963

$

4,580

$

4,719

$

14,358

$

13,257

Purchases of property, plant and equipment

(172)

(132)

(122)

(426)

(347)

Free cash flow

$

4,791

$

4,448

$

4,597

$

13,932

$

12,910

 Fiscal Quarter
Ending 

November 3,

Expected average diluted share count: 

2024

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

4,824

Non-GAAP adjustment ⁽²⁾

88

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

4,912