Paying users zone. Data is covered by .

  • Get to Broadcom Ltd. for $17.99, or

  • get to whole website for at least 3 months from $49.99.

 

$17.99


Income Tax Accounting Policy

Broadcom accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

Broadcom recognizes net deferred tax assets to the extent Broadcom believes these assets will more likely than not be realized. In making such determination, Broadcom considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. If Broadcom determines that Broadcom is able to realize the deferred income tax assets in the future in excess of their net carrying values, Broadcom adjusts the valuation allowance and reduces the provision for income taxes. Likewise, if Broadcom determines that Broadcom is not be able to realize all or part of the net deferred tax assets, Broadcom increases the provision for income taxes in the period such determination is made.

Broadcom accounts for uncertainty in income taxes in accordance with the applicable accounting guidance on income taxes. This guidance provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits.

Source: Broadcom Ltd., Annual Report

Top


Income Tax Expense (Benefit)

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

USD $ in millions

 
12 months ended Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
Domestic
Foreign
Current tax expense
Domestic
Foreign
Deferred tax expense (benefit)
Provision for income taxes

Source: Based on data from Broadcom Ltd. Annual Reports

Item Description The company
Current tax expense The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations. Broadcom Ltd.'s current tax expense declined from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level.
Deferred tax expense (benefit) The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Broadcom Ltd.'s deferred tax expense (benefit) increased from 2015 to 2016 but then declined significantly from 2016 to 2017.
Provision for income taxes The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to pretax income (loss) from continuing operations; income tax expense (benefit) may include interest and penalties on tax uncertainties based on the entity's accounting policy. Broadcom Ltd.'s provision for income taxes increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

Top


Effective Income Tax Rate (EITR)

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

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
Statutory tax rate in Singapore % % % % % %
Foreign income taxed at different rates % % % % % %
Tax holidays and concessions % % % % % %
Other, net % % % % % %
Valuation allowance % % % % % %
Actual tax rate on income (loss) before income taxes % % % % % %

Source: Based on data from Broadcom Ltd. Annual Reports

Item Description The company
Actual tax rate on income (loss) before income taxes A ratio calculated by dividing the reported amount of income tax expense attributable to continuing operations for the period by GAAP-basis pretax income from continuing operations. Broadcom Ltd.'s actual tax rate on income (loss) before income taxes declined from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level.

Top


Components of Deferred Tax Assets and Liabilities

Broadcom Ltd., components of deferred tax assets and liabilities

USD $ in millions

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
Depreciation and amortization
Inventory
Trade accounts
Employee benefits
Employee share awards
Net operating loss carryovers and credit carryovers
Other deferred income tax assets
Gross deferred income tax assets
Valuation allowance
Deferred income tax assets
Depreciation and amortization
Notes receivable
Other deferred income tax liabilities
Foreign earnings not indefinitely reinvested
Deferred income tax liabilities
Net deferred income tax assets (liabilities)

Source: Based on data from Broadcom Ltd. Annual Reports

Item Description The company
Gross deferred income tax assets The sum of the tax effects as of the balance sheet date of the amounts of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws (before the valuation allowance, if any, to reduce such sum amount to net realizable value). Includes any tax benefit realized in deferred tax assets for significant impacts of tax planning strategies. Broadcom Ltd.'s gross deferred income tax assets increased from 2015 to 2016 and from 2016 to 2017.
Deferred income tax assets The aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; net of deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Broadcom Ltd.'s deferred income tax assets increased from 2015 to 2016 and from 2016 to 2017.
Net deferred income tax assets (liabilities) For entities that net deferred tax assets and tax liabilities, represents the unclassified net amount of deferred tax assets and liabilities as of the balance sheet date, which result from applying the applicable enacted tax rate to net temporary differences and carryforwards pertaining to assets or liabilities. A temporary difference is a difference between the tax basis of an asset or liability and its carrying amount in the financial statements prepared in accordance with generally accepted accounting principles that will reverse in ensuing periods. Broadcom Ltd.'s net deferred income tax assets (liabilities) declined from 2015 to 2016 and from 2016 to 2017.

Top


Deferred Tax Assets and Liabilities, Classification

Broadcom Ltd., deferred tax assets and liabilities, classification

USD $ in millions

 

Source: Based on data from Broadcom Ltd. Annual Reports

Item Description The company
Current deferred income tax assets (in Other current assets) The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset.
Current deferred income tax liabilities (in Other current liabilities) Represents the current portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A current taxable temporary difference is a difference between the tax basis and the carrying amount of a current asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference.
Non-current deferred income tax assets (in Other long-term assets) The noncurrent portion as of the balance sheet date of the aggregate carrying amount of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after the valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Broadcom Ltd.'s non-current deferred income tax assets (in Other long-term assets) increased from 2015 to 2016 but then declined significantly from 2016 to 2017.
Non-current deferred income tax liabilities (in Other long-term liabilities) Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Broadcom Ltd.'s non-current deferred income tax liabilities (in Other long-term liabilities) increased from 2015 to 2016 but then slightly declined from 2016 to 2017.

Top


Analyst Adjustments: Removal of Deferred Taxes

Broadcom Ltd., adjustments to financial data

USD $ in millions

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
Adjustment to Current Assets
Current assets (as reported)
Less: Current deferred tax assets, net
Current assets (adjusted)
Adjustment to Total Assets
Total assets (as reported)
Less: Current deferred tax assets, net
Less: Noncurrent deferred tax assets, net
Total assets (adjusted)
Adjustment to Current Liabilities
Current liabilities (as reported)
Less: Current deferred tax liabilities, net
Current liabilities (adjusted)
Adjustment to Total Liabilities
Total liabilities (as reported)
Less: Current deferred tax liabilities, net
Less: Noncurrent deferred tax liabilities, net
Total liabilities (adjusted)
Adjustment to Total Broadcom Limited Shareholders' Equity
Total Broadcom Limited shareholders' equity (as reported)
Less: Net deferred tax assets (liabilities)
Total Broadcom Limited shareholders' equity (adjusted)
Adjustment to Net Income (loss) Attributable To Ordinary Shares
Net income (loss) attributable to ordinary shares (as reported)
Add: Deferred income tax expense (benefit)
Net income (loss) attributable to ordinary shares (adjusted)

Top


Adjusted Ratios: Removal of Deferred Taxes (Summary)

Broadcom Ltd., adjusted ratios

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
Current Ratio
Reported current ratio
Adjusted current ratio
Net Profit Margin
Reported net profit margin % % % % % %
Adjusted net profit margin % % % % % %
Total Asset Turnover
Reported total asset turnover
Adjusted total asset turnover
Financial Leverage
Reported financial leverage
Adjusted financial leverage
Return on Equity (ROE)
Reported ROE % % % % % %
Adjusted ROE % % % % % %
Return on Assets (ROA)
Reported ROA % % % % % %
Adjusted ROA % % % % % %
Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Broadcom Ltd.'s adjusted current ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Broadcom Ltd.'s adjusted net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Broadcom Ltd.'s adjusted total asset turnover deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
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 Ltd.'s adjusted financial leverage declined from 2015 to 2016 but then slightly increased from 2016 to 2017.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. Broadcom Ltd.'s adjusted ROE deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Broadcom Ltd.'s adjusted ROA deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Top


Adjusted Current Ratio

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
As Reported
Current assets (USD $ in millions)
Current liabilities (USD $ in millions)
Current ratio1
Adjusted for Deferred Taxes
Adjusted current assets (USD $ in millions)
Adjusted current liabilities (USD $ in millions)
Adjusted current ratio2

2017 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= ÷ =

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= ÷ =

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Broadcom Ltd.'s adjusted current ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Top


Adjusted Net Profit Margin

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
As Reported
Net income (loss) attributable to ordinary shares (USD $ in millions)
Net revenue (USD $ in millions)
Net profit margin1 % % % % % %
Adjusted for Deferred Taxes
Adjusted net income (loss) attributable to ordinary shares (USD $ in millions)
Adjusted net profit margin2 % % % % % %

2017 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to ordinary shares ÷ Net revenue
= 100 × ÷ = %

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to ordinary shares ÷ Net revenue
= 100 × ÷ = %

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Broadcom Ltd.'s adjusted net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

Top


Adjusted Total Asset Turnover

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
As Reported
Net revenue (USD $ in millions)
Total assets (USD $ in millions)
Total asset turnover1
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions)
Adjusted total asset turnover2

2017 Calculations

1 Total asset turnover = Net revenue ÷ Total assets
= ÷ =

2 Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= ÷ =

Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Broadcom Ltd.'s adjusted total asset turnover deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Top


Adjusted Financial Leverage

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
As Reported
Total assets (USD $ in millions)
Total Broadcom Limited shareholders' equity (USD $ in millions)
Financial leverage1
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions)
Adjusted total Broadcom Limited shareholders' equity (USD $ in millions)
Adjusted financial leverage2

2017 Calculations

1 Financial leverage = Total assets ÷ Total Broadcom Limited shareholders' equity
= ÷ =

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Broadcom Limited shareholders' equity
= ÷ =

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 Ltd.'s adjusted financial leverage declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

Top


Adjusted Return on Equity (ROE)

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
As Reported
Net income (loss) attributable to ordinary shares (USD $ in millions)
Total Broadcom Limited shareholders' equity (USD $ in millions)
ROE1 % % % % % %
Adjusted for Deferred Taxes
Adjusted net income (loss) attributable to ordinary shares (USD $ in millions)
Adjusted total Broadcom Limited shareholders' equity (USD $ in millions)
Adjusted ROE2 % % % % % %

2017 Calculations

1 ROE = 100 × Net income (loss) attributable to ordinary shares ÷ Total Broadcom Limited shareholders' equity
= 100 × ÷ = %

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to ordinary shares ÷ Adjusted total Broadcom Limited shareholders' equity
= 100 × ÷ = %

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. Broadcom Ltd.'s adjusted ROE deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Top


Adjusted Return on Assets (ROA)

 
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
As Reported
Net income (loss) attributable to ordinary shares (USD $ in millions)
Total assets (USD $ in millions)
ROA1 % % % % % %
Adjusted for Deferred Taxes
Adjusted net income (loss) attributable to ordinary shares (USD $ in millions)
Adjusted total assets (USD $ in millions)
Adjusted ROA2 % % % % % %

2017 Calculations

1 ROA = 100 × Net income (loss) attributable to ordinary shares ÷ Total assets
= 100 × ÷ = %

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to ordinary shares ÷ Adjusted total assets
= 100 × ÷ = %

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Broadcom Ltd.'s adjusted ROA deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Top