Inventory Accounting Policy

Broadcom values the inventory at the lower of the actual cost of the inventory or the current estimated market value of the inventory, with cost being determined under the first-in, first-out method. Broadcom records a provision for excess and obsolete inventory based primarily on the forecast of product demand and production requirements. The excess and obsolete balance determined by this analysis becomes the basis for Broadcom's excess and obsolete inventory charge and the written-down value of the inventory becomes its new cost basis.

Source: Broadcom Inc., Annual Report

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Inventory Disclosure

Broadcom Inc., Statement of Financial Position, Inventory

USD $ in millions

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
Finished goods 562  431  177  185  53  42 
Work-in-process 696  596  271  250  154  99 
Raw materials 189  373  76  84  78  53 
Inventory 1,447  1,400  524  519  285  194 

Source: Based on data from Broadcom Inc. Annual Reports

Item Description The company
Finished goods Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. Broadcom Inc.'s finished goods increased from 2015 to 2016 and from 2016 to 2017.
Work-in-process Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing. Broadcom Inc.'s work-in-process increased from 2015 to 2016 and from 2016 to 2017.
Raw materials Carrying amount as of the balance sheet date of unprocessed items to be consumed in the manufacturing or production process. Also includes purchased parts that will be used as components of a finished product. Broadcom Inc.'s raw materials increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.
Inventory Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). Broadcom Inc.'s inventory increased from 2015 to 2016 and from 2016 to 2017.

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