Supplemental Financial Information

6 Months Ended

May. 01, 2016

Balance Sheet Related Disclosures [Abstract]

Cash, Cash Equivalents and Short-Term Investments

Cash equivalents included $307 million and $490 million of time deposits as of May 1, 2016 and November 1, 2015, respectively. As of May 1, 2016 and November 1, 2015, cash equivalents also included $132 million and $100 million of money-market funds, respectively. For time deposits, carrying value approximates fair value due to the short-term nature of the instruments. The fair value of money-market funds as of May 1, 2016 and November 1, 2015 approximates the carrying value and is determined using unadjusted prices in active, accessible markets for identical assets, as such they are classified as Level 1 assets in the fair value hierarchy.

Available-for-sale investments of $15 million and $58 million, primarily consisting of corporate bonds, are reported at fair value and are included in cash and cash equivalents and other current assets, respectively, on our condensed consolidated balance sheet as of May 1, 2016. These available-for-sale investments are traded less frequently than Level 1 securities and are valued using inputs that include quoted prices for similar assets in active markets and inputs other than quoted prices that are observable for the assets. As such, they are classified as Level 2 assets in the fair value hierarchy.

Inventory

Inventory consists of the following (in millions):



	May 1, 2016		November 1, 2015
Finished goods	$	720	$	177
Work-in-process	479		271
Raw materials	268		76
Total inventory	$	1,467	$	524

Assets held-for-sale

The following table summarizes components of assets held-for-sale (in millions):



	May 1, 2016		November 1, 2015
Goodwill	$	445	$	—
Intangible assets, net	328		—
Other assets	69		22
Total assets held-for-sale	$	842	$	22

In connection with the Broadcom Merger, we classified certain BRCM businesses as assets held-for-sale on February 1, 2016. The carrying value of these assets as of May 1, 2016 represents the fair value determined in the preliminary purchase price allocation of the Broadcom Merger, adjusted for operating activities since the Acquisition Date. During the fiscal quarter ended May 1, 2016, we entered into agreements to sell our Wireless Internet of Things, or IoT, and Wireless Infrastructure Backhaul businesses for $550 million and $80 million, respectively. As of May 1, 2016, the carrying values of these businesses approximated the selling prices.

During the two fiscal quarters ended May 1, 2016, we recognized a $16 million loss related to the sale of certain fiber optics subsystem manufacturing and related assets in restructuring, impairment and disposal charges in our condensed consolidated statements of operations. See Note 11. “Restructuring, Impairment and Disposal Charges.”

Discontinued Operations

We have presented the results of the BRCM businesses discussed above under “Assets held-for-sale”, as well as the sale of our Axxia business in fiscal year 2015, in discontinued operations. The following table summarizes the selected financial information of discontinued operations (in millions):



	Fiscal Quarter Ended					Two Fiscal Quarters Ended
	May 1, 2016			May 3, 2015		May 1, 2016			May 3, 2015
Net revenue	$	64		$	12	$	64		$	53

Income (loss) from discontinued operations before gain on disposal and income taxes	$	(61	)	$	5	$	(61	)	$	17
Gain on disposal of discontinued operations	—			—		—			14
(Provision for) benefit from income taxes	23			—		23			(13		)
Income (loss) from discontinued operations, net of income taxes	$	(38	)	$	5	$	(38	)	$	18

Accrued Rebate Activity

The following table summarizes activity related to accrued rebates included in other current liabilities on our condensed consolidated balance sheet (in millions):



	Two Fiscal Quarters Ended
	May 1, 2016			May 3, 2015
Beginning balance	$	26		$	31
Liabilities assumed in acquisitions	359			—
Charged as a reduction of revenue	223			16
Reversal of unclaimed rebates	(3		)	—
Payments	(215		)	(22		)
Ending balance	$	390		$	25

Other Long-Term Liabilities

Other long-term liabilities consist of the following (in millions):



	May 1, 2016		November 1, 2015
Deferred tax liabilities	$	9,837	$	9
Unrecognized tax benefits ^(a)	842		317
Other	176		55
Total other long-term liabilities	$	10,855	$	381

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(a) Includes accrued interest and penalties.

Supplemental Cash Flow Disclosures

At May 1, 2016 and November 1, 2015, we had $133 million and $78 million, respectively, of unpaid purchases of property, plant and equipment included in accounts payable. Amounts reported as unpaid purchases are presented as cash outflows from investing activities for purchases of property, plant and equipment in the condensed consolidated statements of cash flows in the period in which they are paid.

Broadcom Cayman L.P. 10-Q