Segment Information

Reportable Segments

We have four reportable segments: wired infrastructure, wireless communications, enterprise storage and industrial & other. These segments align with our principal target markets. The segments represent components for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer of Broadcom, who has been identified as the Chief Operating Decision Maker, or the CODM, as defined by authoritative guidance on segment reporting, in determining how to allocate resources and evaluate performance. The segments are determined based on several factors, including client base, homogeneity of products, technology, delivery channels and similar economic characteristics.

Our CODM assesses the performance of each segment and allocates resources to those segments based on net revenue and operating results and does not evaluate our segments using discrete asset information. Operating results by segment include items that are directly attributable to each segment. Operating results by segment also include shared expenses such as global operations, including manufacturing support, logistics and quality control, in addition to expenses associated with selling, general and administrative activities for the business, which are allocated primarily based on revenue, while facilities expenses are primarily allocated based on site-specific headcount.

Unallocated Expenses

Unallocated expenses include amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring, impairment and disposal charges, acquisition-related costs, charges related to inventory step-up to fair value, litigation settlement charges, and other costs, which are not used in evaluating the results of, or in allocating resources to, our segments. Acquisition-related costs also include transaction costs and any costs directly related to the acquisition and integration of acquired businesses.

Depreciation expense directly attributable to each reportable segment is included in operating results for each segment. However, the CODM does not evaluate depreciation expense by operating segment and, therefore, it is not separately presented. There was no inter-segment revenue. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.



	Fiscal Year
	2018			2017			2016

	(In millions)
Net revenue:
Wired infrastructure	$	8,674		$	8,549		$	6,582
Wireless communications	6,490			5,404			3,724
Enterprise storage	4,673			2,799			2,291
Industrial & other	1,011			884			643
Total net revenue	$	20,848		$	17,636		$	13,240

Operating income (loss):
Wired infrastructure	$	4,093		$	3,853		$	2,664
Wireless communications	2,840			2,155			1,282
Enterprise storage	2,906			1,527			995
Industrial & other	571			447			327
Unallocated expenses	(5,275		)	(5,599		)	(5,677		)
Total operating income (loss)	$	5,135		$	2,383		$	(409	)

The following tables present net revenue and long-lived asset information based on geographic region. Net revenue is based on the geographic location of the distributors, OEMs or contract manufacturers who purchased our products, which may differ from the geographic location of the end customers. Long-lived assets include property, plant and equipment and are based on the physical location of the assets.



	Fiscal Year
	2018		2017		2016

	(In millions)
Net revenue:
China	$	10,305	$	9,460	$	7,184
United States	2,697		1,266		1,124
Other	7,846		6,910		4,932
	$	20,848	$	17,636	$	13,240



	November 4, 2018		October 29, 2017

	(In millions)
Long-lived assets:
United States	$	1,859	$	1,822
Taiwan	264		268
Other	512		509
	$	2,635	$	2,599

Significant Customer Information

We sell our products through our direct sales force and a select network of distributors globally. Two direct customers accounted for 20% and 14% of our net accounts receivable balance at November 4, 2018 compared with one direct customer which accounted for 17% of our net accounts receivable balance at October 29, 2017. During fiscal year 2018, no direct customers represented more than 10% of our net revenue. During fiscal years 2017 and 2016, one direct customer represented 14% of our net revenue in each period. The majority of the revenue from this customer was included in our wireless communications and wired infrastructure segments. This customer is a contract manufacturer for a number of OEMs.