BROADCOM CORP

CIK:0001054374|SEC Filings

Unaudited Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net revenue:
Net revenue	$ 2,187	$ 2,260	$ 6,341	$ 6,285
Cost of revenue	1,015	1,077	2,926	3,086
Gross profit	1,172	1,183	3,415	3,199
Operating expenses:
Research and development	542	573	1,619	1,843
Selling, general and administrative	177	176	542	543
Amortization of purchased intangible assets	1	8	4	26
Impairments of long-lived assets	0	200	143	390
Restructuring costs, net	4	114	15	142
Settlement costs	4	2	5	20
Other charges (gains), net	8	(1)	26	(60)
Total operating expenses	736	1,072	2,354	2,904
Income from operations	436	111	1,061	295
Interest expense, net	(1)	(17)	(9)	(27)
Other income, net	6	9	1	4
Income before income taxes	441	103	1,053	272
Provision for income taxes	12	5	29	10
Net income	$ 429	$ 98	$ 1,024	$ 262
Net income per share (basic) (usd per share)	$ 0.71	$ 0.17	$ 1.70	$ 0.45
Net income per share (diluted) (usd per share)	$ 0.69	$ 0.16	$ 1.66	$ 0.44
Weighted average shares (basic) (shares)	608	591	603	587
Weighted average shares (diluted) (shares)	620	607	616	598
Dividends per share (usd per share)	$ 0.14	$ 0.12	$ 0.42	$ 0.36

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net income	$ 1,024	$ 262
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	122	141
Stock-based compensation expense	261	340
Acquisition-related items:
Amortization of purchased intangible assets	102	169
Impairments of long-lived assets	143	390
Loss (gain) on sale of assets and other	4	(44)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	(161)	(143)
Inventory	(21)	(100)
Prepaid expenses and other assets	(38)	7
Accounts payable	16	97
Deferred revenue	(17)	98
Other accrued and long-term liabilities	(175)	75
Net cash provided by operating activities	1,260	1,292
Investing activities
Net purchases of property and equipment	(254)	(214)
Net cash paid for acquired companies	0	(9)
Proceeds from sale (purchases) of certain assets and other	(18)	90
Purchases of marketable securities	(3,797)	(1,868)
Proceeds from sales and maturities of marketable securities	2,813	1,417
Net cash used in investing activities	(1,256)	(584)
Financing activities
Issuance of long-term debt, net	0	592
Payments of long-term debt	0	400
Repurchases of Class A common stock	(463)	(418)
Dividends paid	(254)	(211)
Proceeds from issuance of common stock	494	419
Minimum tax withholding paid on behalf of employees for restricted stock units	(114)	(93)
Net cash used in financing activities	(337)	(111)
Increase (decrease) in cash and cash equivalents	(333)	597
Cash and cash equivalents at beginning of period	2,545	1,657
Cash and cash equivalents at end of period	$ 2,212	$ 2,254

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 2,212	$ 2,545
Short-term marketable securities	1,252	1,061
Accounts receivable, net	966	804
Inventory	552	531
Prepaid expenses and other current assets	131	131
Total current assets	5,113	5,072
Property and equipment, net	656	516
Long-term marketable securities	3,180	2,383
Goodwill	3,701	3,710
Purchased intangible assets, net	426	664
Other assets	159	126
Total assets	13,235	12,471
Current liabilities:
Accounts payable	516	503
Wages and related benefits	311	220
Deferred revenue and income	41	36
Accrued liabilities	553	791
Total current liabilities	1,421	1,550
Long-term debt	1,594	1,593
Other long-term liabilities	$ 231	$ 277
Commitments and contingencies
Shareholders’ equity:
Common stock	$ 0	$ 0
Additional paid-in capital	12,519	12,595
Accumulated deficit	(2,431)	(3,455)
Accumulated other comprehensive loss	(99)	(89)
Total shareholders’ equity	9,989	9,051
Total liabilities and shareholders’ equity	$ 13,235	$ 12,471