BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED

(IN MILLIONS)

Fiscal Quarter Ended

February 4,

October 29,

January 29,

2024

2023

2023

Gross margin on GAAP basis

$

7,375

$

6,407

$

6,004

Amortization of acquisition-related intangible assets

1,380

438

535

Stock-based compensation expense

161

62

37

Restructuring charges

92

1

2

Acquisition-related costs

6

-

-

Gross margin on non-GAAP basis

$

9,014

$

6,908

$

6,578

Research and development on GAAP basis

$

2,308

$

1,388

$

1,195

Stock-based compensation expense

863

448

267

Acquisition-related costs

1

-

(1)

Research and development on non-GAAP basis

$

1,444

$

940

$

929

Selling, general and administrative expense on GAAP basis

$

1,572

$

418

$

348

Stock-based compensation expense

548

128

87

Acquisition-related costs

285

69

42

Selling, general and administrative expense on non-GAAP basis

$

739

$

221

$

219

Total operating expenses on GAAP basis

$

5,292

$

2,167

$

1,901

Amortization of acquisition-related intangible assets

792

348

348

Stock-based compensation expense

1,411

576

354

Restructuring and other charges

620

13

10

Acquisition-related costs

286

69

41

Total operating expenses on non-GAAP basis

$

2,183

$

1,161

$

1,148

Operating income on GAAP basis

$

2,083

$

4,240

$

4,103

Amortization of acquisition-related intangible assets

2,172

786

883

Stock-based compensation expense

1,572

638

391

Restructuring and other charges

712

14

12

Acquisition-related costs

292

69

41

Operating income on non-GAAP basis

$

6,831

$

5,747

$

5,430

Other income, net on GAAP basis

$

185

$

132

$

143

(Gains) losses on investments

(33)

24

(44)

Other

-

(1)

-

Other income, net on non-GAAP basis

$

152

$

155

$

99

Provision for income taxes on GAAP basis

$

68

$

443

$

66

Non-GAAP tax reconciling adjustments

735

244

574

Provision for income taxes on non-GAAP basis

$

803

$

687

$

640

Net income on GAAP basis

$

1,325

$

3,524

$

3,774

Amortization of acquisition-related intangible assets

2,172

786

883

Stock-based compensation expense

1,572

638

391

Restructuring and other charges

712

14

12

Acquisition-related costs

292

69

41

(Gains) losses on investments

(33)

24

(44)

Other

-

(1)

-

Non-GAAP tax reconciling adjustments

(735)

(244)

(574)

Income from discontinued operations, net of income taxes

(51)

-

-

Net income on non-GAAP basis

$

5,254

$

4,810

$

4,483

Net income on GAAP basis

$

1,325

$

3,524

$

3,774

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

2,172

786

883

Stock-based compensation expense

1,572

638

391

Restructuring and other charges

712

14

12

Acquisition-related costs

292

69

41

(Gains) losses on investments

(33)

24

(44)

Other

-

(1)

-

Non-GAAP tax reconciling adjustments

(735)

(244)

(574)

Income from discontinued operations, net of income taxes

(51)

-

-

   Other Adjustments:

    Interest expense

926

405

406

    Provision for income taxes on non-GAAP basis

803

687

640

    Depreciation

139

124

127

    Amortization of purchased intangibles and right-of-use assets

34

22

22

Adjusted EBITDA

$

7,156

$

6,048

$

5,678

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

467

427

429

Non-GAAP adjustment ⁽¹⁾

11

8

5

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

478

435

434

Net cash provided by operating activities

$

4,815

$

4,828

$

4,036

Purchases of property, plant and equipment

(122)

(105)

(103)

Free cash flow

$

4,693

$

4,723

$

3,933

 Fiscal Quarter
Ending 

May 5,

Expected average diluted share count: 

2024

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

480

Non-GAAP adjustment ⁽¹⁾

12

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

492