XML 27 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Stockholders' Equity
 9 Months Ended
Aug. 01, 2021
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Mandatory Convertible Preferred Stock
On September 30, 2019, we completed an offering of approximately 4 million shares of 8.00% Mandatory Convertible Preferred Stock, Series A, $0.001 par value per share (“Mandatory Convertible Preferred Stock”).
On September 30, 2022, unless earlier converted, each outstanding share of Mandatory Convertible Preferred Stock will automatically convert into shares of our common stock at a rate between the then minimum and maximum conversion rates. At any time prior to September 30, 2022, holders may elect to convert each share of Mandatory Convertible Preferred Stock
into shares of our common stock at the then minimum conversion rate. The conversion rates are subject to anti-dilution adjustments. As of August 1, 2021, the minimum conversion rate was 3.0763 and the maximum conversion rate was 3.5957.
As of each August 1, 2021 and November 1, 2020, we recognized $27 million of accrued preferred stock dividends, which were presented as temporary equity on our condensed consolidated balance sheets.
Cash Dividends Declared and Paid
Fiscal Quarter EndedThree Fiscal Quarters Ended
August 1,
2021		August 2,
2020		August 1,
2021		August 2,
2020
(In millions, except per share data)
Dividends per share to common stockholders
$3.60 $3.25 $10.80 $9.75 
Dividends to common stockholders$1,482 $1,312 $4,427 $3,915 
Dividends per share to preferred stockholders
$20.00 $20.00 $60.00 $60.00 
Dividends to preferred stockholders$74 $74 $224 $224 
Stock-Based Compensation Expense
Fiscal Quarter EndedThree Fiscal Quarters Ended
August 1,
2021		August 2,
2020		August 1,
2021		August 2,
2020
(In millions)
Cost of products sold$18 $26 $59 $84 
Cost of subscriptions and services18 11 47 37 
Research and development285 337 920 1,101 
Selling, general and administrative100 91 264 305 
Total stock-based compensation expense$421 $465 $1,290 $1,527 
As of August 1, 2021, the total unrecognized compensation cost related to unvested stock-based awards was $3,334 million, which is expected to be recognized over the remaining weighted-average service period of 3.1 years.
Equity Incentive Award Plans
During the fiscal quarter ended May 2, 2021, our stockholders approved the amendment and restatement of our 2012 stock incentive plan, now called Broadcom Inc. 2012 Stock Incentive Plan (the “Amended 2012 Plan”). Under the Amended 2012 Plan, we may grant to all employees stock options and stock appreciation rights with an exercise price that is no less than the fair market value on the date of grant, and time- and market-based RSUs. The Amended 2012 Plan reduced the number of shares available for new equity award grants to 20 million shares and removed the annual share replenishment provision. We will make no further equity award grants under our LSI Corporation 2003 Equity Incentive Plan.
A summary of time- and market-based RSU activity is as follows:
Number of RSUs
Outstanding		Weighted-Average
Grant Date
Fair Value
Per Share
(In millions, except per share data)
Balance as of November 1, 202032 $188.35 
Granted1 $404.43 
Vested(6)$211.74 
Forfeited(2)$187.68 
Balance as of August 1, 202125 $200.55 
The aggregate fair value of time- and market-based RSUs that vested during the three fiscal quarters ended August 1, 2021 was $2,888 million, which represented the market value of our common stock on the date that the RSUs vested. The number of RSUs vested included shares of common stock that we withheld for settlement of employees’ tax obligations due upon the vesting of RSUs.