Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Broadcom Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
Federal	952)	174)	446)	7)	(49)	255)
State	23)	48)	46)	51)	(16)	38)
Foreign	541)	762)	534)	506)	342)	171)
Current tax expense	1,516)	984)	1,026)	564)	277)	464)
Federal	(499)	68)	(876)	(627)	(497)	(8,666)
State	(31)	(15)	(114)	(161)	(113)	(103)
Foreign	29)	(98)	(7)	(294)	(177)	221)
Deferred tax expense (benefit)	(501)	(45)	(997)	(1,082)	(787)	(8,548)
Provision for (benefit from) income taxes	1,015)	939)	29)	(518)	(510)	(8,084)

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Broadcom Inc. current tax expense decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Broadcom Inc. deferred tax expense (benefit) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Provision for (benefit from) income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Broadcom Inc. provision for (benefit from) income taxes increased from 2021 to 2022 and from 2022 to 2023.

Broadcom Inc., effective income tax rate (EITR) reconciliation

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
Statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
State, net of federal benefit	0.00%	0.20%	-0.80%	-3.60%	-4.60%	-1.10%
Redomiciliation transaction withholding tax remeasurement	0.00%	0.00%	0.00%	0.00%	0.00%	-25.60%
Foreign income taxed at different rates	-17.30%	-19.10%	-22.80%	-48.60%	-52.50%	-16.30%
Deemed inclusion of foreign earnings	9.90%	8.00%	9.50%	23.30%	25.90%	4.70%
Foreign-derived intangible income deduction	0.00%	0.00%	-3.10%	-1.50%	0.00%	0.00%
Uncertain tax benefits	-1.90%	1.60%	3.70%	0.00%	0.00%	0.00%
Excess tax benefits from stock-based compensation	-3.40%	-3.00%	-4.60%	-6.00%	-10.40%	-4.00%
Research and development credit	-1.80%	-1.40%	-2.30%	-4.30%	-7.60%	-2.90%
Other, net	0.20%	0.20%	-0.20%	-1.50%	0.20%	5.30%
Effective tax rate on income (loss) before income taxes, before 2017 Tax reform	6.70%	7.50%	0.40%	-21.20%	-28.00%	-18.90%
2017 Tax Reform Act	0.00%	0.00%	0.00%	0.00%	5.10%	-159.00%
Effective tax rate on income (loss) before income taxes	6.70%	7.50%	0.40%	-21.20%	-22.90%	-177.90%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

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Item	Description	The company
Effective tax rate on income (loss) before income taxes, before 2017 Tax reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Broadcom Inc. effective tax rate on income (loss) before income taxes, before 2017 Tax reform increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Broadcom Inc., components of deferred tax assets and liabilities

US$ in millions

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
Net operating loss, credit and other carryforwards	1,809)	1,808)	1,774)	1,773)	1,733)	1,421)
Capitalized research and development	275)	—)	—)	—)	—)	—)
Deferred revenue	208)	645)	1,332)	529)	316)	—)
Employee stock awards	190)	183)	192)	273)	218)	159)
Depreciation and amortization	223)	156)	—)	—)	—)	—)
Other deferred income tax assets	329)	343)	446)	449)	313)	226)
Gross deferred income tax assets	3,034)	3,135)	3,744)	3,024)	2,580)	1,806)
Valuation allowance	(1,789)	(1,777)	(1,782)	(1,707)	(1,563)	(1,347)
Deferred income tax assets	1,245)	1,358)	1,962)	1,317)	1,017)	459)
Depreciation and amortization	(97)	(341)	(847)	(1,477)	(2,360)	(316)
Unamortized discount and issuance costs	(302)	(322)	(374)	(57)	—)	—)
Foreign earnings not indefinitely reinvested	(86)	(86)	(73)	(112)	(138)	(16)
Other deferred income tax liabilities	(62)	(36)	—)	—)	—)	(12)
Deferred income tax liabilities	(547)	(785)	(1,294)	(1,646)	(2,498)	(344)
Net deferred income tax assets (liabilities)	698)	573)	668)	(329)	(1,481)	115)

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

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Item	Description	The company
Gross deferred income tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Broadcom Inc. gross deferred income tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred income tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Broadcom Inc. deferred income tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Net deferred income tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Broadcom Inc. net deferred income tax assets (liabilities) decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Broadcom Inc., adjustments to financial statements

US$ in millions

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
Adjustment to Total Assets
Total assets (as reported)	72,861)	73,249)	75,570)	75,933)	67,493)	50,124)
Less: Noncurrent deferred tax assets, net	698)	573)	668)	—)	—)	115)
Total assets (adjusted)	72,163)	72,676)	74,902)	75,933)	67,493)	50,009)
Adjustment to Total Liabilities
Total liabilities (as reported)	48,873)	50,540)	50,581)	52,032)	42,523)	23,467)
Less: Noncurrent deferred tax liabilities, net	—)	—)	—)	329)	1,481)	—)
Total liabilities (adjusted)	48,873)	50,540)	50,581)	51,703)	41,042)	23,467)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	23,988)	22,709)	24,962)	23,874)	24,941)	26,657)
Less: Net deferred tax assets (liabilities)	698)	573)	668)	(329)	(1,481)	115)
Stockholders’ equity (adjusted)	23,290)	22,136)	24,294)	24,203)	26,422)	26,542)
Adjustment to Net Income Attributable To Broadcom Inc. Stockholders
Net income attributable to Broadcom Inc. stockholders (as reported)	14,082)	11,495)	6,736)	2,960)	2,724)	12,259)
Add: Deferred income tax expense (benefit)	(501)	(45)	(997)	(1,082)	(787)	(8,548)
Net income attributable to Broadcom Inc. stockholders (adjusted)	13,581)	11,450)	5,739)	1,878)	1,937)	3,711)

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

Broadcom Inc., Financial Data: Reported vs. Adjusted

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Broadcom Inc., adjusted financial ratios

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
Net Profit Margin
Reported net profit margin	39.31%	34.62%	24.54%	12.39%	12.05%	58.80%
Adjusted net profit margin	37.92%	34.48%	20.91%	7.86%	8.57%	17.80%
Total Asset Turnover
Reported total asset turnover	0.49	0.45	0.36	0.31	0.33	0.42
Adjusted total asset turnover	0.50	0.46	0.37	0.31	0.33	0.42
Financial Leverage
Reported financial leverage	3.04	3.23	3.03	3.18	2.71	1.88
Adjusted financial leverage	3.10	3.28	3.08	3.14	2.55	1.88
Return on Equity (ROE)
Reported ROE	58.70%	50.62%	26.99%	12.40%	10.92%	45.99%
Adjusted ROE	58.31%	51.73%	23.62%	7.76%	7.33%	13.98%
Return on Assets (ROA)
Reported ROA	19.33%	15.69%	8.91%	3.90%	4.04%	24.46%
Adjusted ROA	18.82%	15.75%	7.66%	2.47%	2.87%	7.42%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Broadcom Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Broadcom Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Broadcom Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Broadcom Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Broadcom Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Broadcom Inc., Financial Ratios: Reported vs. Adjusted

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	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Broadcom Inc. stockholders	14,082)	11,495)	6,736)	2,960)	2,724)	12,259)
Net revenue	35,819)	33,203)	27,450)	23,888)	22,597)	20,848)
Profitability Ratio
Net profit margin¹	39.31%	34.62%	24.54%	12.39%	12.05%	58.80%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Broadcom Inc. stockholders	13,581)	11,450)	5,739)	1,878)	1,937)	3,711)
Net revenue	35,819)	33,203)	27,450)	23,888)	22,597)	20,848)
Profitability Ratio
Adjusted net profit margin²	37.92%	34.48%	20.91%	7.86%	8.57%	17.80%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

2023 Calculations

¹ Net profit margin = 100 × Net income attributable to Broadcom Inc. stockholders ÷ Net revenue
= 100 × 14,082 ÷ 35,819 = 39.31%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Broadcom Inc. stockholders ÷ Net revenue
= 100 × 13,581 ÷ 35,819 = 37.92%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Broadcom Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
As Reported
Selected Financial Data (US$ in millions)
Net revenue	35,819)	33,203)	27,450)	23,888)	22,597)	20,848)
Total assets	72,861)	73,249)	75,570)	75,933)	67,493)	50,124)
Activity Ratio
Total asset turnover¹	0.49	0.45	0.36	0.31	0.33	0.42
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenue	35,819)	33,203)	27,450)	23,888)	22,597)	20,848)
Adjusted total assets	72,163)	72,676)	74,902)	75,933)	67,493)	50,009)
Activity Ratio
Adjusted total asset turnover²	0.50	0.46	0.37	0.31	0.33	0.42

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

2023 Calculations

¹ Total asset turnover = Net revenue ÷ Total assets
= 35,819 ÷ 72,861 = 0.49

² Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 35,819 ÷ 72,163 = 0.50

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Broadcom Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	72,861)	73,249)	75,570)	75,933)	67,493)	50,124)
Stockholders’ equity	23,988)	22,709)	24,962)	23,874)	24,941)	26,657)
Solvency Ratio
Financial leverage¹	3.04	3.23	3.03	3.18	2.71	1.88
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	72,163)	72,676)	74,902)	75,933)	67,493)	50,009)
Adjusted stockholders’ equity	23,290)	22,136)	24,294)	24,203)	26,422)	26,542)
Solvency Ratio
Adjusted financial leverage²	3.10	3.28	3.08	3.14	2.55	1.88

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 72,861 ÷ 23,988 = 3.04

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 72,163 ÷ 23,290 = 3.10

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Broadcom Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Broadcom Inc. stockholders	14,082)	11,495)	6,736)	2,960)	2,724)	12,259)
Stockholders’ equity	23,988)	22,709)	24,962)	23,874)	24,941)	26,657)
Profitability Ratio
ROE¹	58.70%	50.62%	26.99%	12.40%	10.92%	45.99%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Broadcom Inc. stockholders	13,581)	11,450)	5,739)	1,878)	1,937)	3,711)
Adjusted stockholders’ equity	23,290)	22,136)	24,294)	24,203)	26,422)	26,542)
Profitability Ratio
Adjusted ROE²	58.31%	51.73%	23.62%	7.76%	7.33%	13.98%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

2023 Calculations

¹ ROE = 100 × Net income attributable to Broadcom Inc. stockholders ÷ Stockholders’ equity
= 100 × 14,082 ÷ 23,988 = 58.70%

² Adjusted ROE = 100 × Adjusted net income attributable to Broadcom Inc. stockholders ÷ Adjusted stockholders’ equity
= 100 × 13,581 ÷ 23,290 = 58.31%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Broadcom Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Broadcom Inc. stockholders	14,082)	11,495)	6,736)	2,960)	2,724)	12,259)
Total assets	72,861)	73,249)	75,570)	75,933)	67,493)	50,124)
Profitability Ratio
ROA¹	19.33%	15.69%	8.91%	3.90%	4.04%	24.46%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Broadcom Inc. stockholders	13,581)	11,450)	5,739)	1,878)	1,937)	3,711)
Adjusted total assets	72,163)	72,676)	74,902)	75,933)	67,493)	50,009)
Profitability Ratio
Adjusted ROA²	18.82%	15.75%	7.66%	2.47%	2.87%	7.42%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04).

2023 Calculations

¹ ROA = 100 × Net income attributable to Broadcom Inc. stockholders ÷ Total assets
= 100 × 14,082 ÷ 72,861 = 19.33%

² Adjusted ROA = 100 × Adjusted net income attributable to Broadcom Inc. stockholders ÷ Adjusted total assets
= 100 × 13,581 ÷ 72,163 = 18.82%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Broadcom Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Broadcom Inc. (NASDAQ:AVGO)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

Broadcom Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Broadcom Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)