Broadcom AVGO · USD

Segment Information Reportable SegmentsWe have two reportable segments: semiconductor solutions and infrastructure software. Each segment has separate financial information. The CODM considers actual and expected results of regularly provided net revenue and operating income by segment during the budgeting and forecasting processes to support strategic decision-making and to evaluate the performance of and allocate resources to each of the segments. Operating income by segment includes items that are directly attributable to each segment and shared expenses such as marketing, general and administrative activities, facilities and IT expenses. Shared expenses are primarily allocated based on revenue and headcount. The CODM does not evaluate each segment using discrete asset information. The reportable segments are also determined based on several factors including, but not limited to, customer base, homogeneity of products, technology, delivery channels and similar economic characteristics.Semiconductor solutions. Our semiconductor solutions are used in a wide array of environments, end products and applications such as enterprise and AI data centers, servers and networking and connectivity equipment, as well as storage systems, home connectivity devices, set-top boxes, broadband access, telecommunication equipment, wireless devices and base stations, factory automation, power generation and alternative energy systems, and electronic displays. Our semiconductor solutions segment also includes our IP licensing.Infrastructure software. Our infrastructure software solutions include revenues from software arrangements, related support, and professional services that help enterprises simplify their IT environments. Our customers rely on our infrastructure and security software solutions to modernize, optimize, and secure the most complex private cloud, hybrid cloud and edge environments. This enables scalability, agility, automation, insights, resiliency and security, making it easy for customers to run their mission-critical workloads. We also offer mission-critical FC SAN products and related software.Depreciation expense directly attributable to each reportable segment is included in the operating results of each segment. However, the CODM does not evaluate depreciation expense by segment and, therefore, it is not separately presented.

Revenue from Contracts with Customers Reclassifications to Consolidated Statements of OperationsIn fiscal year 2025, we included upfront license revenue of $7,800 million within products revenue in our consolidated statements of operations. To conform to the current year presentation, we reclassified $4,601 million and $1,058 million of upfront license revenue from subscriptions and services revenue to products revenue for fiscal years 2024 and 2023, respectively. We also reclassified the related costs for the upfront license revenue, which were immaterial, for the periods presented. In the revenue disaggregation tables by type and by region presented below, we included $5,539 million, $559 million and $1,702 million of upfront license revenue in products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for fiscal year 2025. To conform to the current year presentation, we reclassified $2,654 million, $650 million, and $1,297 million of upfront license revenue from subscriptions and services revenue to products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for fiscal year 2024. We also reclassified $990 million, $9 million, and $59 million of upfront license revenue from subscriptions and services revenue to products revenue within the Americas; Asia Pacific; and Europe, the Middle East and Africa regions, respectively, for fiscal year 2023.DisaggregationWe have considered (1) information that is regularly reviewed by our Chief Executive Officer, who has been identified as the chief operating decision maker (the “CODM”) as defined by the authoritative guidance on segment reporting, in evaluating financial performance and (2) disclosures presented outside of our financial statements in our earnings releases and used in investor presentations to disaggregate revenues. The principal category we use to disaggregate revenues is the nature of our products and subscriptions and services, as presented in our consolidated statements of operations. In addition, revenues by reportable segment are presented in Note 13. “Segment Information.

Commitments and ContingenciesCommitments The following table summarizes contractual obligations and commitments as of November 2, 2025:Fiscal Year:Purchase CommitmentsOther Contractual Commitments(In millions)2026$106 $777 202712 650 202810 624 20294 890 2030— 300 Thereafter— 873 Total$132 $4,114 Purchase Commitments. Represent unconditional purchase obligations to purchase goods or services, primarily inventory, that are enforceable and legally binding on us and specify all significant terms, including fixed or minimum quantities to be purchased, price provisions, and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable without penalty and unconditional purchase obligations with a remaining term of one year or less.Other Contractual Commitments. Represent amounts payable pursuant to agreements related to IT and other service agreements.Due to the inherent uncertainty with respect to the timing of future cash outflows associated with our unrecognized tax benefits at November 2, 2025, we are unable to reliably estimate the timing of cash settlement with the respective taxing authorities. Therefore, $1,628 million of unrecognized tax benefits and accrued interest and penalties as of November 2, 2025 have been excluded from the table above.ContingenciesFrom time to time, we are involved in litigation that we believe is of the type common to companies engaged in our lines of business, including commercial disputes, employment issues, tax disputes and disputes involving claims by third parties that our activities infringe their patent, copyright, trademark or other IP rights, as well as regulatory investigations or inquiries. Legal proceedings and regulatory investigations or inquiries are often complex, may require the expenditure of significant funds and other resources, and the outcomes of such proceedings are inherently uncertain, with material adverse outcomes possible. IP property claims generally involve the demand by a third-party that we cease the manufacture, use or sale of the allegedly infringing products, processes or technologies and/or pay substantial damages or royalties for past, present and future use of the allegedly infringing IP.

Income Taxes The components of income before income taxes by U.S. and foreign jurisdictions were as follows: Fiscal Year202520242023(In millions)Domestic income (loss)$2,507 $(4,851)$(63)Foreign income20,222 14,767 15,160 Income from continuing operations before income taxes$22,729 $9,916 $15,097 The components of the provision for (benefit from) income taxes were as follows: Fiscal Year202520242023(In millions)Current tax provision: Federal$660 $1,030 $952 State185 52 23 Foreign791 701 541 Total1,636 1,783 1,516 Deferred tax provision (benefit): Federal(1,844)1,855 (499)State(257)(70)(31)Foreign68 180 29 Total(2,033)1,965 (501)Total provision for (benefit from) income taxes$(397)$3,748 $1,015 The following is a reconciliation of our effective tax rate to the statutory federal tax rate: Fiscal Year202520242023Statutory tax rate21.0 %21.0 %21.0 %State, net of federal benefit(0.2)(0.1)— Foreign income taxed at different rates(14.9)(22.4)(17.3)Deemed inclusion of foreign earnings7.1 16.3 9.9 Change in valuation allowance5.8 — — Impact of non-recurring intra-group transfer of certain IP rights— 39.6 — Releases and settlements from statutes expirations(7.9)— (2.2)Tax contingency interest accrual0.3 1.8 0.3 Excess tax benefits from stock-based compensation(9.6)(13.1)(3.4)Research and development credit(3.8)(6.0)(1.8)Other, net0.5 0.7 0.2 Effective tax rate on income before income taxes(1.7)%37.8 %6.7 %On July 4, 2025, the United States enacted the One Big Beautiful Bill Act, which allows for the immediate expensing of domestic research and development costs and certain capital expenditures, and changes the United States taxation of profits derived from foreign operations. As a result, it is no longer more-likely-than-not that we are able to utilize our federal corporate alternative minimum tax (“CAMT”) credits, and we established a $1,321 million valuation allowance against our CAMT credit carryforwards and CAMT credits generated in the current fiscal year. Our policy is to not consider the impact of future years’ CAMT in our valuation allowance assessment for regular deferred tax assets. Most of the provisions are effective beginning in our fiscal years ending November 1, 2026 or October 31, 2027, with the exception of immediate expensing of qualifying property being effective in fiscal year 2025.

LeasesWe have operating leases for our facilities, land, data centers and certain equipment. Operating lease expense was $182 million, $187 million and $91 million for fiscal years 2025, 2024 and 2023, respectively. Other operating lease information, which included the impact of VMware leases acquired on November 22, 2023, was as follows: Fiscal Year202520242023(In millions)Cash paid for leases included in operating cash flows$277 $223 $90 ROU assets obtained in exchange for lease liabilities$220 $1,165 $28 November 2,2025November 3,2024Weighted-average remaining lease term (in years)1111Weighted-average discount rate 4.78 %5.

Acquisitions Acquisition of VMware, Inc.On November 22, 2023, we completed the VMware Merger. Pursuant to the Agreement and Plan of Merger, each share of VMware common stock issued and outstanding immediately prior to the VMware Merger was indirectly converted into the right to receive, at the election of the holder of such share of VMware common stock, either $142.50 in cash or 2.52 shares of Broadcom common stock (on a split adjusted basis). The stockholder election was prorated, such that the total number of shares of VMware common stock entitled to receive cash and the total number of shares of VMware common stock entitled to receive Broadcom common stock, in each case, was equal to 50% of the aggregate number of shares of VMware common stock issued and outstanding immediately prior to the VMware Merger. Based on the VMware stockholders’ elections, the VMware stockholders received approximately $30,788 million in cash and 544 million shares of Broadcom common stock with a fair value of $53,398 million. We funded the cash portion of the VMware Merger with the net proceeds from the issuance of the 2023 Term Loans, as defined and discussed in Note 10. “Borrowings”, as well as cash on hand. We assumed $8,250 million of VMware’s outstanding senior unsecured notes.Purchase Consideration(In millions)Fair value of Broadcom common stock issued for outstanding VMware common stock$53,398 Cash paid for outstanding VMware common stock30,788 Cash paid by Broadcom to retire VMware’s term loan1,257 Fair value of partially vested assumed VMware equity awards805 Fair value of Broadcom common stock issued for accelerated VMware equity awards23 Cash paid for accelerated VMware equity awards13 Effective settlement of pre-existing relationships6 Total purchase consideration86,290 Less: cash acquired6,642 Total purchase consideration, net of cash acquired$79,648 We assumed all outstanding VMware RSU awards and performance stock unit (“PSU”) awards held by continuing employees. The assumed awards were converted into RSU awards for shares of Broadcom common stock. All outstanding in-the-money VMware stock options and RSU awards held by non-employee directors were accelerated and converted into the right to receive cash and shares of Broadcom common stock, in equal parts.

Our cybersecurity risk management program is intended to protect the confidentiality, integrity and availability of our critical systems and information. At any given time, we face cybersecurity risks and threats, some of which are not fully mitigated, and we routinely address newly discovered vulnerabilities. We continuously work to enhance our information security program and risk management efforts. Our program includes processes for identifying, assessing and managing material risks from cybersecurity threats that are guided by the National Institute of Standards & Technology’s Cybersecurity Framework, the ISO 27001 international standard for information security and other applicable industry benchmarks. Our cybersecurity risk management program is integrated into our overall enterprise risk management system and processes, and includes:•a team of professionals within our Global Technology Organization who are responsible for identifying and mitigating cybersecurity risks and managing our security controls and response activities;•risk assessment processes designed to identify cybersecurity risks to our critical systems, information, products, services and our broader enterprise IT environment;•an annual tabletop exercise to simulate a response to a cybersecurity incident; and•mandatory training annually and upon hiring for all employees and contractors on data privacy and cybersecurity topics.When appropriate, we utilize independent, external service providers to assess, test or otherwise assist with certain aspects of our cybersecurity risk management program and related processes, including for penetration testing, threat monitoring and incident response. We also employ a vendor risk assessment process to mitigate risks presented by certain third-party service providers, and we require such providers to manage their cybersecurity risks in conformance to industry standards, notify us of relevant cybersecurity events and satisfy additional contractual requirements. As of the date of this Annual Report on Form 10-K, we are not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition.

Borrowings Effective Interest RateNovember 2,2025November 3,2024(Dollars in millions)September 2025 Senior Notes4.200% notes due October 20304.34 %$1,000 $— 4.800% notes due February 20364.90 %2,250 — 4.900% notes due February 20384.99 %1,750 — 5,000 — July 2025 Senior Notes4.600% notes due July 20304.49 %(a)1,750 — 4.900% notes due July 20325.04 %1,750 — 5.200% notes due July 20354.77 %(a)2,500 — 6,000 — January 2025 Senior Notes4.800% notes due April 20285.03 %1,100 — 5.050% notes due April 20305.20 %800 — 5.200% notes due April 20325.34 %1,100 — 3,000 — October 2024 Senior Notes4.150% notes due February 20284.36 %875 875 4.350% notes due February 20304.51 %1,500 1,500 4.550% notes due February 20324.70 %875 875 4.800% notes due October 20344.38 %(a)1,750 1,750 5,000 5,000 July 2024 Senior Notes5.050% notes due July 20275.27 %1,250 1,250 5.050% notes due July 20295.23 %2,250 2,250 5.150% notes due November 20315.30 %1,500 1,500 5,000 5,000 April 2022 Senior Notes4.000% notes due April 20294.17 %750 750 4.150% notes due April 20324.30 %1,200 1,200 4.926% notes due May 20375.33 %2,500 2,500 4,450 4,450 September 2021 Senior Notes3.137% notes due November 20354.23 %3,250 3,250 3.187% notes due November 20364.79 %2,750 2,750 6,000 6,000 March 2021 Senior Notes3.419% notes due April 20334.66 %2,250 2,250 3.469% notes due April 20344.63 %3,250 3,250 5,500 5,500 Effective Interest RateNovember 2,2025November 3,2024(Dollars in millions)January 2021 Senior Notes1.950% notes due February 20282.10 %750 750 2.450% notes due February 20312.56 %2,750 2,750 2.600% notes due February 20332.70 %1,750 1,750 3.500% notes due February 20413.60 %3,000 3,000 3.750% notes due February 20513.84 %1,750 1,750 10,000 10,000 June 2020 Senior Notes3.459% notes due September 20264.19 %752 752 4.110% notes due September 20285.02 %1,118 1,118 1,870 1,870 May 2020 Senior Notes3.150% notes due November 20253.29 %900 900 4.150% notes due November 20304.27 %1,856 1,856 4.300% notes due November 20324.39 %2,000 2,000 4,756 4,756 April 2020 Senior Notes5.000% notes due April 20305.18 %606 606 April 2019 Senior Notes4.750% notes due April 20294.95 %1,655 1,655 2017 Senior Notes3.125% notes due January 20253.23 %— 495 3.875% notes due January 20274.02 %— 2,922 3.500% notes due January 20283.60 %777 777 777 4,194 Assumed VMware Senior Notes4.500% notes due May 20255.81 %— 750 1.400% notes due August 20265.60 %1,500 1,500 4.650% notes due May 20275.60 %— 500 3.900% notes due August 20275.